Question: o CAPM ( S 8 . 2 ) True or false? Explain or qualify as necessary. b . Investors demand rates of return. c .
o CAPM S 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 $ portfolio will have a beta of in with of return on a beta of Treasury bills stocks with will more and offer a zero variable $ in expected e The CAPM predicts that investors demand higher expected rates of stocks with returns that are highly exposed to businesscycle risk. the market return from 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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