The CAPM formula for accounting for systematic risk is given by: r = r f f
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Question:
The CAPM formula for accounting for systematic risk is given by: r = r f f ß * (r m m - r f f ) A typical way of obtaining the risk-free rate is by using the:
a. 1-year risk-free government bond rate
b. 10-year risk free government bond rate
c. Difference between the average market return and the return on government bonds
d. Correlation between a firm's returns and the market returns
Related Book For
Basic Technical Mathematics
ISBN: 9780137529896
12th Edition
Authors: Allyn J. Washington, Richard Evans
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