Which of the following statements about the capital asset pricing model (capm) is (are) correct?
a. the capm is a mathematical model that depicts the exact price that an investor should be willing to pay for any given investment.
b. the capm estimates the required rate of return on a stock held as part of a well-diversified portfolio.
c. in the capm, a stock's expected rate of return will depend on its diversifiable risk.
d. under the capm when the risk-free rate is 2% and the market risk premium is 5%, the expected return on a stock with a beta of 1.2 is 8%.