Question: Based on the capital asset pricing model, what would decrease the expected return on an individual security, all else held constant? An increase in the
Based on the capital asset pricing model, what would decrease the expected return on an individual security, all else held constant?
An increase in the risk level of that security as measured by standard deviation
An increase in the risk-free rate given a security beta of 1.42 A decrease in the market rate of return given a security beta of 1.13 A decrease in the market rate of return given a security beta of .78
A decrease in the risk-free rate given a security beta of 1.06
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