Which of the following is a model that includes an equation that relates a stock's required return to an appropriate risk premium?
A) asset pricing
B) behavioral finance
C) beta
D) efficient markets

Question

Quizplus · Accepted Answer

Asset pricing models, such as the Capital Asset Pricing Model (CAPM), include equations that relate a stock's required return to an appropriate risk premium, taking into account the risk relative to the overall market.

Which of the Following Is a Model That Includes an Equation