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

Ans: B. stock with a beta of 1.38

Business

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Plant life and vegetation growing on the surface of land are considered ________

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