Question: o CAPM ( S 8 . 2 ) True or false? Explain or qualify as necessary. b . Investors demand rates of return. c .

o CAPM (S8.2) True or false? Explain or qualify as necessary. b. Investors demand rates of return. c. The CAPM return. higher predicts expected rates that a security d. An investor who puts $10,000 portfolio will have a beta of 2.0. in with of return on a beta of Treasury bills 0 stocks with will more and offer a zero variable $20,000 in expected e. The CAPM predicts that investors demand higher expected rates of stocks with returns that are highly exposed to business-cycle risk. the market return from 7. a. Investors demand higher expected rates of return from stocks with returns that are very sensitive to fluctuations in the stock market.

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