The Capital Asset Pricing Model (CAPM) includes which of the following in its base assumptions?
| I. | Investors buying positive beta stocks should earn a minimum return equal to the risk-free rate.
| II. | Investors in the market should earn a return greater than the return on the overall market. |
| III. | Investors should be rewarded for the amount of risk they assume. |
| IV. | Investors should earn a return located above the Security Market Line. |
▸ I and III only
▸ II and IV only
▸ I, II and III only
▸ I, III and IV only
|
|
Read 65 times
1 Reply
|
