Economics · Financial Management - CAPM
Assertion (A): According to CAPM, the expected return of a security depends on its beta coefficient. Reason (R): Beta measures the sensitivity of a security's return to changes in the market portfolio.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both A and R are true and R is the correct explanation of A✓
- 2Both A and R are true but R is not the correct explanation of A
- 3A is true but R is false
- 4A is false but R is true
Correct answer
Both A and R are true and R is the correct explanation of A
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