According to the Capital Asset Pricing Model (CAPM), the expected return of a well- diversified portfolio with abeta of 1.0 and positive ex-ante alpha (a) is

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Question:

According to the Capital Asset Pricing Model (CAPM), the expected return of a well- diversified portfolio with abeta of 1.0 and positive ex-ante alpha (a) is

A.

The risk-free rate, rf

B.

ß (rœ r)mf

C.

Between rand rmf

D.

r+ a

Answer» d. r+ a

Note: The above multiple-choice question is for all general and Competitive Exams in India.