The asset pricing theory based on a beta, a measure of market risk.
A) Behavioral Asset Pricing Model
B) Capital Asset Pricing Model
C) Efficient Markets Asset Pricing Model
D) Efficient Market Hypothesis

Question

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The Capital Asset Pricing Model (CAPM) is based on the idea that the expected return on an asset is determined by its beta, which measures the asset's sensitivity to market risk. CAPM is one of the most widely used asset pricing models in finance.

The Asset Pricing Theory Based on a Beta, a Measure