Question Title * 1. In the CAPM, if an asset if more correlated with the market (your portfolio), then you require a expected return on the asset. higher lower Question Title * 2. In the CAPM, the components of the asset's expected return are the pure time value of money, the amount of market risk in the asset, and: the amount of firm specific risk in the asset. the price of market risk. the price of liquidity. transaction costs. Question Title * 3. An asset's beta measures the asset's: firm specific (or idiosyncratic) risk. market (or systematic) risk. volatility. Done
