The Asset Beta in the Capital Asset Pricing Model Is

question 147

Multiple Choice

The asset beta in the Capital Asset Pricing Model is a moderate number that measures:

• A) how sensitive the asset's return is to market movements.
• B) how sensitive the asset's discount rate is to changes in inflation.
• C) the risk premium on the stock market.
• D) the risk premium on an individual stock.

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Definitions:

Economic Resources

Assets, natural resources, human resources, and capital that can be used for producing goods and services.

Uniform Crime Report

An official measure of crime in the United States, produced by the FBI’s official tabulation of every crime reported by more than 18,000 law enforcement agencies.

Murder

The intentional and unlawful killing of another person.

Societal Goals

Collective aims or objectives pursued by a society, which can include economic prosperity, social welfare, environmental sustainability, and cultural enrichment.