Earn the most risk premium based on CAPM

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Reference no: EM131568087

Which one of the following should earn the most risk premium based on CAPM?

A. diversified portfolio with returns similar to the overall market

B. stock with a beta of 1.38

C. stock with a beta of 0.74

D. U.S. Treasury bill

E. portfolio with a beta of 1.01

Reference no: EM131568087

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