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