Which in base? assumptions for capital asset pricing model

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Problem 1: The Capital Asset Pricing Model? (CAPM) includes which of the following in its base? assumptions?

I. Investors buying positive beta stocks should earn a minimum return equal to the risk-free rate.

II. Investors in the market should earn a return greater than the return on the overall market.

III. Investors should be rewarded for the amount of risk they assume.

IV. Investors should earn a return located above the Security Market Line.

Reference no: EM132989726

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