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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(R_A) = R_f+_A(E(R_M) - R_f) " is true

E(R_A) is the required rate of return for stock A.

R_fis the real risk-free rate.

E(R_M) is the required rate of return on the individual security.

_Ais the beta coefficient for the market portfolio.

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