CAPM has been subject to much criticism over the years, andusing it to forecast expected returns isn't guaranteed to yield accurate results. Risks arise because the market return may not meet expectations, the risk-free rate may go up or down and the asset's beta may change. Advertisement...
doi:10.1007/0-387-26336-5_799One implication of the capital asset pricing model (CAPM) is that security risk premiums (expected excess returns) will be proportional to beta. This is used to describe relationship between return anChengFew LeeAlice C. LeeSpringer US...
In the capital asset pricing model, the expected return on an asset with a beta equal to zero would be equal to ___. A. the expected return on the market portfolio B. the risk premium on the market portfolio C. zero D. the risk-free rate相关...
A. the line that describes the expected return-beta relationship for well-diversified portfolios only. B. also called the capital allocation line. C. the line that is tangent to the efficient frontier of all risky assets. D. the line that represents the expected return-beta relationship. E. ...
Asset 1 hasexpected returnr1.───资产的预期收益率是。 You'd have a higherexpected returnwith no more variance.───你的预期收益率提高了,但风险没有增加。 The yield is how much interest you earn if you hold the bond to maturity, which people often equate withexpected return.───收益...
The CAPM model is tested by performing two-pass regression analyzes with using the software package EViews. The first steps performed characteristic line regression was used to estimate stocks of beta. The second steps performed cross-sectional regression analyzes the relationship average return of the...
If the expected return on the equity market is 10% and the risk-free rate is 3%, the required return on an asset with beta of 0.6 is closest to:A. 6.0%.B. 9.0%.C. 7.2%. 正确答案:C 分享到: 答案解析: The required return on an asset is equal to the current expected risk-free...
If the expected return on the equity market is 10% and the risk-free rate is 3%, the required return on an asset with beta of 0.6 is closest to : A. 6.0%. B. 9.0%. C. 7.2%. 相关知识点: 试题来源: 解析 C 略 反馈 收藏
百度试题 结果1 题目 Iftheexpectedreturnontheequitymarketis10%andtherisk-freerateis3%,therequiredreturnonanassetwithbetaof0.6isclosestto: A. 6.0%. B. 9.0%. C. 7.2%. 相关知识点: 试题来源: 解析 C 略 反馈 收藏
ra= expected return; rf= therisk-free rate of return; β = the investment'sbeta; and rm=the expected market return The expected return above the risk-free rate of return depends on the investment's beta, or relative volatility compared to the broader market. The expected return andstandard...