Testing of the CAPM suggests the trade-off between expected return and risk is an upward-sloping straight line.

Name: Testing of the CAPM suggests the trade-off between expected return and risk is an upward-sloping straight line.
Brand: Quizplus
Rating: 4.7 (39 reviews)

Question

Quizplus · Accepted Answer

This is correct. The CAPM model predicts a linear relationship between expected return and risk, and empirical testing has generally supported this concept, although there is some debate over the exact nature of the relationship.

Testing of the CAPM Suggests the Trade-Off Between Expected Return