Which of the following is NOT a key variable in the equation for the capital asset pricing model?
A. the risk-free rate of interest
B. the expected rate of return on the market portfolio
C. the marginal tax rate
D. All are important components of the CAPM.
Answer:C
Which of the following is NOT a key variable in the equation for the capital asset pricing model?
A. the risk-free rate of interest B. the expected rate of return on the market portfolio C. the marginal tax rate D. All are important components of the CAPM.