True of the capital asset pricing model

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Which statement is NOT true of The Capital Asset Pricing Model (CAPM): A. CAPM defines required return for a level of risk b. CAPM implies that the market will not compensate investors for the total risk. c. CAPM is a linear function, the “Security Market Line.” d. CAPM is a one-factor arbitrage pricing model. e. CAPM is a good predictor of returns on an individual security

Reference no: EM131176607

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