Which statement is NOT true of The Capital Asset Pricing Model (CAPM):
A. CAPM defines required return for a level of risk
b. CAPM implies that the market will not compensate investors for the total risk.
c. CAPM is a linear function, the “Security Market Line.”
d. CAPM is a one-factor arbitrage pricing model.
e. CAPM is a good predictor of returns on an individual security.