Question: What security is commonly used as a proxy for the risk-free rate in the (CAPM) Capital Asset Pricing Model? A Treasury bond rate B prime

What security is commonly used as a proxy for the risk-free rate in the (CAPM) Capital Asset Pricing Model?

A Treasury bond rate

B prime rate

C discount rate

D. federal funds rate

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!