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Which of the following is true of the CAPM? CAPM tells us the reward for bearing risk in the financial markets. All of the above.

Which of the following is true of the CAPM?

CAPM tells us the reward for bearing risk in the financial markets.

All of the above.

Capital projects promising returns that plot above the security market line will have positive NPV.

The security market line tells us the "required return" for a capital project under consideration.

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