Question: Question in Finance: Which statement regarding CAPM is INCORRECT? A. Beta measures the exposure to the market risk B. The required return on each stock

Question in Finance:

Which statement regarding CAPM is INCORRECT? A. Beta measures the exposure to the market risk B. The required return on each stock is linear in beta C. When risk-free rate increases, the expected return of a stock can either increase or decrease. D. An asset with a more negative beta should have higher expected return because it can serve as insurance to investors, and thus is deemed attractive

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