According to the capital asset pricing model, the expected rate of return on any security is equal to __________.

According to the capital asset pricing model, the expected rate of return on any security is equal to __________.
A . [(the risk-free rate) + (beta of the security)] x (market risk premium)
B . (the risk-free rate) + [(variance of the security’s return) x (market risk premium)]
C . (the risk-free rate) + [(security’s beta) x (market risk premium)]
D . (market rate of return) + (the risk-free rate)]

Answer: C

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