American_Bankers_Association
CTFA · Question #83
CTFA Question #83: Real Exam Question with Answer & Explanation
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Question
According to the capital-asset pricing model (CAPM), a security's expected (required) return is equal to the risk-free rate plus a premium:
Options
- AEqual to the security's beta
- BBased on the unsystematic risk of the security
- CBased on the total risk of the security
- DBased on the systematic risk of the security
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