The Capital Asset Pricing Model (CAPM) is:

1. A model that relates the required rate of return on a security to its systematic risk as measured

by beta.

B. A model stating that all investors desire the same portfolio of risky assets and can be satisfied by

a single mutual fund composed of that portfolio.

C. A plot of a securitys expected excess return over the risk-free rate as a function of the excess

return on the market.

D. the complete portfolio as a combination of the market portfolio and the risk-free asset.