Question
Which of the following statements about Capital Asset Pricing Model (CAPM) equation E(R A ) = R f + A (E(R M ) R f
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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Entrepreneurial Finance
Authors: J . chris leach, Ronald w. melicher
4th edition
538478152, 978-0538478151
