Based on the capital asset pricing model, which one of the following must increase the expected return on an individual security, all else held constant?
A)An increase in the risk level of that security as measured by standard deviation
B)An increase in the risk-free rate given a security beta of 1.42
C)A decrease in the market rate of return given a security beta of 1.13
D)A decrease in the market rate of return given a security beta of .78
E)A decrease in the risk-free rate given a security beta of 1.06

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The Answer of Based on the capital asset pricing model, which one of the following must increase the expected return on an individual security, all else held constant?
A)An increase in the risk level of that security as measured by standard deviation
B)An increase in the risk-free rate given a security beta of 1.42
C)A decrease in the market rate of return given a security beta of 1.13
D)A decrease in the market rate of return given a security beta of .78
E)A decrease in the risk-free rate given a security beta of 1.06

Based on the Capital Asset Pricing Model, Which One of the Following