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The capital asset pricing model ________. uses an unsystematic measure of risk to quantify returns provides a risk-return tradeoff in which risk is measured in
The capital asset pricing model ________.
uses an unsystematic measure of risk to quantify returns | ||
provides a risk-return tradeoff in which risk is measured in terms of beta | ||
measures the expected market return divided by beta | ||
uses beta as a measure of the total risk of a security | ||
shows that you can earn higher returns by adding diversifiable risk |
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