Which Model Would You Be Adopting If You Used the Formula

question 26

Multiple Choice

Which model would you be adopting if you used the formula E(ri) = rf + fi[E (rm) - rf) ?

• A) Portfolio Expected Returns
• B) Capital Asset Pricing
• C) Security Market Line
• D) Risk Removal by Diversification

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Definitions:

Job Performance

The extent to which an employee effectively fulfills the elements contained within their job description, including productivity, efficiency, and quality of work.

Happy Worker

An employee who experiences satisfaction and positive emotions in their work environment, often leading to higher productivity and morale.

High Bonuses

Significant extra financial compensation awarded to employees, often tied to performance metrics or achievements.

Organizational Citizenship

The voluntary commitment of employees to go beyond their contractual work requirements for the betterment of the organization.