According to the CAPM Equation,which of the Following Represents the Risk

question 38

Multiple Choice

According to the CAPM equation,which of the following represents the risk premium for security 'i'?

• A)fi_i (r_m)
• B)fi_i (r_m - r_f)
• C)fi_i (r_m - r_f)a_m² D)fi_i

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Definitions:

Trade Secrets

Confidential business information that provides an enterprise a competitive edge and is often not disclosed to the public.

Misappropriations

involves the wrongful, illegal, or unauthorized use of funds or assets for purposes other than those intended by the owner or rightful possessor.

World Trade Organization

An international organization that deals with the rules of trade between nations, aiming to ensure that trade flows as smoothly, predictably, and freely as possible.

Basic Purpose

The fundamental reason or objective for the existence of an entity, policy, or action.