Question: The capital asset pricing model is given by R-R_(f)=alpha +beta (R_(M)-R_(f))+epsi , where R_(M)= expected return on the market, R_(f)= risk-free market return, and R=

The capital asset pricing model is given by

R-R_(f)=\\\\alpha +\\\\beta (R_(M)-R_(f))+\\\\epsi

, where

R_(M)=

expected return on the market,

R_(f)=

risk-free market return, and

R=

expected return on a stock or portfolio of interest. The explanatory variable in this model is\ Multiple Choice\

R

R-R_(f)

R_(M)

R_(M)-R_(f)

$The capital asset pricing model is given by R-R_(f)=\\\\alpha +\\\\beta (R_(M)-R_(f))+\\\\epsi$

The capital asset pricing model is given by RRf=+(RMRf)+, where RM= expected return on the market, Rf= risk-free market return, and R= expected return on a stock or portfolio of interest. The explanatory variable in this model is Multiple Choice R RRf RM RMRf

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