Question: 3 . The CAPM is an: A . equilibrium model that predicts the expected return on a stock given the expected return on the market

3. The CAPM is an:
A. equilibrium model that predicts the expected return on a stock given the expected return on the market and the stocks correlation coefficient
B. equilibrium model that predicts the expected return on a stock given the expected return on the market and the stocks covariance
C. equilibrium model that predicts the expected return on a stock given the expected return on the market and the stocks beta coefficient
D. equilibrium model that predicts the expected return on a stock given the expected return on the market and the stocks standard deviation

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