Risk return trade-off of individual assets

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Reference no: EM13817242

The capital asset pricing model (CAPM) relates the risk return trade-off of individual assets to market returns so that a security has a risk-free rate of return and a premium for risk.

  • Explain in detail the components of CAPM.
  • Be sure to include the formula and an explanation of beta.

Reference no: EM13817242

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