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NEW QUESTION: 1
Click on the Exhibit Button to view the Formula Sheet. Which of the following are quoted in terms of a yield-to-maturity?
A. Treasury bill
B. USCP
C. BA
D. ECP
Answer: D
NEW QUESTION: 2
According to the CAPM, the beta of a risky asset depends upon:
A. the risk-free rate and the risky asset's market risk premium
B. all of the above
C. the return expected by investors for holding the risky asset
D. covariance between the market portfolio and the risky asset; and the variance of the market portfolio
Answer: D
Explanation:
Explanation
The beta of a risky asset is determined solely by the covariance between the asset and the variance of the market portfolio. Recall that = covariancex, y / variancex, where x is the market portfolio and y is the risky asset. Choice 'c' is the correct answer.
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