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Which of the following is correct regarding the CAPM? The expected return for a particular asset depends on the pure time value of money as
Which of the following is correct regarding the CAPM?
The expected return for a particular asset depends on the pure time value of money as measured by beta |
The expected return for a particular asset depends on the amount of systematic risk as measured by the risk free rate |
The standard deviation for a particular asset depends on the reward for bearing risk as measured by beta |
Implicit in the CAPM is that all risky assets have the same reward to risk ratio |
The SML and CAPM illustrate that the higher the beta, the lower the expected return |
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