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    CAPM- multiple choice

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    The capital assets pricing model (CAPM) tells us that in an efficient and fair capital market, the expected return on an asset only depends on its:
    a. Total risk.
    b. Systematic risk.
    c. Unsystematic risk.
    d. No risk.

    18. The CAPM shows that the expected return for a particular asset depends on the following factors except:
    a. Market risk premium.
    b. The pure time value of money.
    c. The amount of unsystematic risk.
    d. The amount of systematic risk.

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    Solution Preview

    CAPM multiple choice
    The capital assets pricing model (CAPM) tells us that in an efficient and fair capital market, the expected return on an asset only depends on its:
    a. Total risk.
    b. Systematic risk. ...

    Solution Summary

    Answers and explanations to 2 CAPM multiple choice questions

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