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Which of the following statements about Capital Asset Pricing Model (CAPM) equation E(R A ) = R f + A (E(R M ) - R
Which of the following statements about Capital Asset Pricing Model (CAPM) equation "E(RA) = Rf + A(E(RM) - Rf) " is true ______
E(RA) is the required rate of return for stock A. | ||
Rf is the real risk-free rate. | ||
E(RM) is the required rate of return on the individual security. | ||
A is the beta coefficient for the market portfolio. |
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