Question: 1. In the capital asset pricing model, the expected return on an asset with a beta of zero is the: A. Market risk premium. B.

1. In the capital asset pricing model, the expected return on an asset with a beta of zero is the:

A. Market risk premium.

B. Risk-free rate of interest.

C. Market risk premium, less the risk-free rate of interest.

D. Risk-free rate of interest, plus the market risk premium.

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