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Which of the following best describes what Beta represents in the CAPM formula?

Which of the following best describes what Beta represents in the CAPM formula?

Select one:

a. The Market Risk Premium for stocks.

b. The quantity of firm specific risk the investor must hold. 

c. The quantity of non-diversifiable risk the investor must hold. 

Top Answer

c. The quantity of... View the full answer

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c. The quantity of... View the full answer

a. The Market... View the full answer

The quantity of non... View the full answer

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