Question

What does the Capital Asset Pricing Model (CAPM) predict the relationship between?

a.

The risk of an asset and its dividend yield

b.

The risk of an asset and its expected return

c.

The risk of an asset and its market capitalization

d.

The risk of an asset and its book value

Answer: (b).The risk of an asset and its expected return Explanation:The CAPM predicts the relationship between the risk of an asset and its expected return.

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Q. What does the Capital Asset Pricing Model (CAPM) predict the relationship between?

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