According to the CAPM,for each unit of beta,an asset's required rate of return increases by the market's risk premium.

Question

Quizplus · Accepted Answer

According to the Capital Asset Pricing Model (CAPM), the required rate of return for an asset is equal to the risk-free rate plus the asset's beta multiplied by the market risk premium. Therefore, for each additional unit of beta, an asset's required rate of return would increase by the market risk premium.

According to the CAPM,for Each Unit of Beta,an Asset's Required