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QUESTION

21) Which of the following statements is TRUE?

21) Which of the following statements is TRUE?

a) For holding periods of less than a year, the annualized holding period return would be higher than the HPR.

b) According to CAPM, stocks with greater than average market risk would have an expected return lower than the expected return on the market.

C) If the risk free rate is 1.5% and the MRP is 6 percentage points, then the expected return on the market would be 4.5%

D) Based on our authors' analysis, you would have less confidence about an expected return on 3-Mos. Treasury Bills than you would for large company stocks.

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