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Unpacking the CAPM Match each of the variables used in the equation with its description. See Section 8-4 The return required by investors A. Market

Unpacking the CAPM Match each of the variables used in the equation with its description. See Section 8-4 The return required by investors A. Market Rate of Return in order to take the risk B. Risk free rate associated with the investment The return earned on Treasury C. Required Return Bills or Treasury Bonds D. Market Risk Premium The rate of return on the market portfolio of stocks such as the S&P 500 The additional return earned by taking additional risk and investing in stocks rather than risk free securities

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