According to the CAPM, the Risk Premium an Investor Expects

question 66

Multiple Choice

According to the CAPM, the risk premium an investor expects to receive on any stock or portfolio increases

• A)directly with alpha.
• B)inversely with alpha.
• C)directly with beta.
• D)inversely with beta.

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Definitions:

Reputation

The public perception or esteem in which an individual or company is held by others.

In Rem Jurisdiction

A legal term referring to the power a court has to adjudicate over property located within its territorial boundaries, regardless of the owner's location.

Breached Contract

Occurs when one party fails to fulfill any of its contractual obligations, thereby violating the terms of the contract.

Judgment

The official decision or finding made by a court at the end of a lawsuit.