According to the Capital Asset Pricing Model (CAPM), the expected rate of return on any security is equal to

According to the Capital Asset Pricing Model (CAPM), the expected rate

1.	According to the Capital Asset Pricing Model (CAPM), the expected rate of return on any security is equal to
A.	Rf + β [E(RM)].
B.	Rf + β [E(RM) - Rf].
C.	β [E(RM) - Rf].
D.	E(RM) + Rf.
Answer» C. β [E(RM) - Rf].