Question: 15. The CAPM shows that the expected return for a particular asset depends on: I. The amount of total risk II. The risk premium of

15. The CAPM shows that the expected return for a particular asset depends on: I. The amount of total risk II. The risk premium of the market portfolio III. The pure time value of money 0 1 , I only 2. I and II 3. III only 4. II and III 5. I, II and III 16. You sell some of your IBM common stock (which tends to ise when the economy falls, and vice versa) and replace A with the common stoc K of Microsoft (whose stock tends to move up and down with the economy as a whole). Your portfollo's beta should 1. Increase 2. decrease 3. iemain unchanged 4. either increasedecrease 5. be indeteminate
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