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Which one of these statements is true? The betas used in the CAPM must be greater than 1 but less than 2. By convention, the
Which one of these statements is true?
The betas used in the CAPM must be greater than 1 but less than 2. | |
By convention, the market is given a beta of zero. | |
There is zero chance of default on a U.S. Treasury bill. | |
A U.S. Treasury bill has a beta of zero. | |
The rate of return on a U.S. Treasury bill is used as the value of RM in the CAPM. |
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