Finance Practice Quiz 1602 - ,

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According to the Capital Asset Pricing Model, which type of risk is most likely to be  related to expected return? The total risk of an individual security. The systematic risk of a large diversified portfolio. The unsystematic risk of an individual security. If the current risk-free rate of return is 3%, and a security’s risk premium is 8%, which  rate of return is closest to that security’s required rate of return? 5% 8% 11% In graphing the Security Market Line, which is closest to the beta of the market portfolio  all marketable securities? 0 the risk-free rate of return. 1 The risk-free rate of return is 4% and the market risk premium is 8%.  Also the short- run  expected return of security CC is 10% and its CAPM beta is 1.0, then which of the  following is closest to the excess return (also called alpha) for security CC?
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  • Fall '13
  • AuthorYoung
  • Finance

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