Which one of the following should earn the most risk premium based on CAPM a Diversified portfolio with returns similar to the overall market b Stock with a beta of 1 38 c Stock with a beta of 0 74 d U S Treasury bill e Portfolio with a beta of 1 01 ...

b Stock with a beta of 138 Higher the beta ...

Which one of the following should earn the most risk premium based on CAPM? a. Diversified portfolio

Question:

Which one of the following should earn the most risk premium based on CAPM?
a. Diversified with returns similar to the overall market
b. Stock with a beta of 1.38
c. Stock with a beta of 0.74
d. U.S. Treasury bill
e. with a beta of 1.01?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...