Question: If you were to consider the CAPM as a one-factor model, then the factor would be the: a. rate of inflation. b. market risk premium.

If you were to consider the CAPM as a one-factor model, then the factor would be the:

a. rate of inflation.

b. market risk premium.

c. GNP.
d.

risk-free rate.
e.

individual beta of each security or portfolio.

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