The description of the capital asset pricing model (CAPM) is as follows: the expected rate of return consists of two parts, the risk-free interest rate and the compensation for the risk assumed, that is, the risk premium. 2. The size of the risk premium depends on the size of the β value. The higher the β value, the higher the risk of a single security and the higher the compensation. 3. β measures the system risk of a single security, and there is no risk compensation for non-systemic risks
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