Question

What is the equation for the capital asset pricing model?

Multiple choice question.

Expected return on security = Risk-free rate + Beta × (Return on market - Risk-free rate)


Expected return on security = Risk-free rate + Return on market


Expected return on security = Risk-free rate + Beta × Return on market


Expected return on security = Beta ×(Return on market - Risk-free rate)
GPT-4o mini
The correct equation for the Capital Asset Pricing Model (CAPM) is:

**Expected return on security = Risk-free rate + Beta × (Return on market - Risk-free rate)**

So the first option is the correct one.

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