Question: Which formulas provide the CAPM expected return - beta relationship? ( Recall that E ( r i ) is the expected return of security i

Which formulas provide the CAPM expected return-beta relationship? (Recall that E(ri) is the expected return of security i, and E(R) is its expected excess return.)
E(ri)=rf+i[E(rM)-rf]
E(ri)=i[E(rM)-rf]
E(Ri)=iE(RM)
E(Ri)=ai+iE(RM)
 Which formulas provide the CAPM expected return-beta relationship? (Recall that E(ri)

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!