Question: When utilizing the capital asset pricing model approach to value equity, the outcome: Multiple Choice assumes the reward - to - risk ratio increases as
When utilizing the capital asset pricing model approach to value equity, the outcome:
Multiple Choice
assumes the rewardtorisk ratio increases as beta increases.
is dependent upon the unsystematic risk of a security.
assumes the rewardtorisk ratio is constant.
can only be applied to dividendpaying firms.
assumes a firm's future risks will be higher than its current risks.
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