Which of the following is not an input to the capital asset pricing model?
A)standard deviation
B)beta
C)risk-free rate
D)expected return on the market portfolio

Question

Quizplus · Accepted Answer

Standard deviation is not an input to the capital asset pricing model, whereas beta, risk-free rate, and expected return on the market portfolio are inputs. Standard deviation is not an input to the capital asset pricing model, which is a model that calculates the expected return on an asset based on its beta (systematic risk), the expected return on the market portfolio, and the risk-free rate.

Which of the Following Is Not an Input to the Capital