- CFA Exams
- CFA Level I Exam
- Study Session 18. Portfolio Management (1)
- Reading 53. Portfolio Risk and Return: Part II
- Subject 3. The Capital Asset Pricing Model

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**CFA Practice Question**

The Capital Asset Pricing Model (CAPM) ______

A. determines the total value of a portfolio.

B. indicates what should be the required rates of return on risky assets.

C. can estimate the rate of return on any investment.

**Explanation:**The CAPM indicates what should be the expected or required rates of return on risky assets.

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