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Commerce · Q640

Business Finance

Graduate and Post Graduate · Commerce · question 640

Q640

Which of the following items is a model describing the relationship between risk and expected return (in this model the expected return is equal to the risk-free return plus a premium based on the systematic risk of the security)?

A.
Beta
B.
Characteristic line
C.
Capital Asset Pricing Model
Answer
D.
Efficient Markets Model

Answer: Option C

Solution

Answer: Option C
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