When working with the CAPM, which of the following factors can be determined with the most precision? a. The beta coefficient of "the market," which is the same as the beta of an average stock. b. The expected rate of return on the market, rM. c. The market risk premium (RPM). d. The most appropriate risk-free rate, rRF. e. The beta coefficient, bi, of a relatively safe stock.

Respuesta :

Answer: a. The beta coefficient of "the market," which is the same as the beta of an average stock

Explanation:

When working with Capital Asset Pricing Model the beta coefficient of the market, which is the same as the beta of an average stock determines the most precision.