Question: In the capital asset pricing model ( CAPM ) , the expected return on asset A is equal to the risk - free rate less

In the capital asset pricing model (CAPM), the expected return on asset A is equal to the risk-free rate less beta on asset A multiplied by the expected return on the market minus the risk-free rate.
Select one:
True
False

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!