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In the Capital Asset Pricing Model (CAPM), what does beta measure? A) The risk-free rate of return B) The expected return of the market C) The systematic risk of an asset relative to the market D) The unsystematic risk of an asset

In the Capital Asset Pricing Model (CAPM), what does beta measure? A) The risk-free rate of return B) The expected return of the market C) The systematic risk of an asset relative to the market D) The unsystematic risk of an asset

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 8MC
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What does beta measure?

In the Capital Asset Pricing Model (CAPM), what does beta measure? A) The risk-free rate of return B) The expected return of the market C) The systematic risk of an asset relative to the market D) The unsystematic risk of an asset
Transcribed Image Text:In the Capital Asset Pricing Model (CAPM), what does beta measure? A) The risk-free rate of return B) The expected return of the market C) The systematic risk of an asset relative to the market D) The unsystematic risk of an asset
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