Two central components of the CAPM are the​ ________. A. riskminus free rate and the market risk premium B. risk premium and the inflation rate C. market rate and the inflation premium D. inflation rate and the market rate

Respuesta :

Answer:

A. riskminus free rate and the market risk premium

Explanation:

The CAPM is the Capital asset pricing model which required to find out the expected rate of return. The formula is shown below:

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

And, the (Market rate of return - Risk-free rate of return) is also known as the market risk premium and the same is applied for the computation