What is it prediction of the CAPM with respect to the expected return on any security?

What will be an ideal response?


The CAPM implies that the expected return of any security equals the risk-free rate plus the beta of the security multiplied by the market risk premium. The beta of the security is the covariance of its return with the return on the market portfolio divided by the variance of the market portfolio return. Hence, the risk premium on an individual security is a function of its covariance with the market portfolio.

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Using the set of symbols commonly used in marketing research to denote experimental designs, which symbol below represents the process of observation or measurement of the dependent variable on the test units or group of units?

A) T B) O C) R D) X

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Which of the following is the first step of the performance success cycle?

a. assess b. talk c. think d. coach

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A promissory note:

A. Is a liability to the payee. B. Is a short-term investment for the maker. C. Is a written promise to pay a specified amount of money at a certain date. D. Is another name for an installment receivable. E. Cannot be used in payment of an account receivable.

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When compared to a court trial, arbitration has the advantage of privacy

a. True b. False Indicate whether the statement is true or false

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