Question: The capital asset pricing model ( CAPM ) explains how risk should be considered when stocks and other assets are held by themselvesin portfolios. The

The capital asset pricing model

(

CAPM

)

explains how risk should be considered when stocks and other assets are held by themselvesin portfolios. The CAPM states that any stock's required rate of return is

-

Select

-

less than greater than equal toCorrect

2

of Item

1

the risk

-

free rate of return plus a risk premium that reflects only the risk remaining

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