QUESTION
Which of the following is correct regarding the CAPM?The expected return for a particular asset depends on the pure time value of money as measured by betaThe expected return for a particular asset depends on the amount of systematic risk as measured by the risk free rateThe standard deviation for a particular asset depends on the reward for bearing risk as measured by betaImplicit in the CAPM is that all risky assets have the same reward to risk ratioThe SML and CAPM illustrate that the higher the beta, the lower the expected return
ANSWER:
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