The Key Assumption of the Capital Asset Pricing Model Is

question 61

Multiple Choice

The key assumption of the capital asset pricing model is that an investor cares only about his portfolio's

• A) degree of diversification.
• B) expected income.
• C) level of risk.
• D) expected return and standard deviation.

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Definitions:

Heredity

The passing of traits from parents to offspring through genetic information.

Genes

Units of heredity made up of DNA that act as instructions to make molecules called proteins.

Epigenetic Molecules

Chemical compounds that can alter gene expression without changing the DNA sequence, affecting cellular function and health.

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another neuron or target cell.