Question: Question 3 The basic tenet of the CAPM is that a stock's expected risk premium should be: Not yet answered Select one: Marked out of

Question 3 The basic tenet of the CAPM is that a

Question 3 The basic tenet of the CAPM is that a stock's expected risk premium should be: Not yet answered Select one: Marked out of 1 O a. proportionate to the market return. Flag question O b. greater than the risk-free rate of return. O c. proportionate to the stock's beta. O d. greater than the expected market return, O e. None of the solutions is correct. Question 4 The standard deviations of individual stocks are generally higher than the standard deviation of the market portfolio because the market portfolio: Not yet answered Marked out of 1 Select one: Flag question O a. None of the solutions is correct. O b. has specific risk. O c. diversifies risk. O d. offers lower returns. O e. has less systematic risk

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