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The capital asset pricing model (CAPM) assumes which of the following? I. A risk-free asset has no systematic risk. II. Beta is a reliable estimate
The capital asset pricing model (CAPM) assumes which of the following? |
I. | A risk-free asset has no systematic risk. |
II. | Beta is a reliable estimate of total risk. |
III. | The reward-to-risk ratio is constant. |
IV. | The market rate of return can be approximated. The answer can be a few options. |
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