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Financial Forensics · End Term · 22 Dec 2024 · September 2024 term

Question 5: According to the CAPM, the expected return on a security …

Question 5

+1 markOne correct option

According to the CAPM, the expected return on a security is:

  1. A

    Negatively and non-linearly related to the security's beta.

  2. B

    Positively and linearly related to the security's variance.

  3. C

    Positively and non-linearly related to the security's beta.

  4. D

    Positively and linearly related to the security's beta.

Show answer

Correct answer

  • D

    Positively and linearly related to the security's beta.

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Question 5 of 32 in the IIT Madras BS Financial Forensics (Financial Forensics) End Term paper sat on 22 Dec 2024, in the September 2024 term (IIT M DEGREE AN EXAM QDB3 22 Dec 2024). It carries 1 mark.

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