Which of the Following Is Consistent with the CAPM and Efficient

question 12

Multiple Choice

Which of the following is consistent with the CAPM and efficient capital markets?

• A)A security with a beta of 1 has a return last year of 8% when the market has a return of 12%.
• B)Small stocks with a beta of 1.5 tend to have higher returns on average than large stocks with a beta of 1.5.
• C)A security with only diversifiable risk has an expected return that exceeds the risk-free interest rate.
• D)A security with only systematic risk has an expected return that exceeds the risk-free interest rate.

Understand the dynamics of wages determination in different market conditions, including monopsonistic and unionized environments.

Recognize the role and impact of unions on wage rates, labor supply, and employment levels.

Identify the principal-agent problem and its effects in labor markets.

Comprehend the composition and historical trends of union membership in the United States.

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Definitions:

Participation

Involvement or engagement in an activity, process, or event by contributing effort, opinions, or resources.

Ancient Greeks

A civilization belonging to a period of Greek history that lasted from the Archaic period of the 8th century BC to the end of antiquity.

Night Sky

the appearance of the sky during the night, characterized by visible celestial bodies such as stars, planets, and the moon.

Galaxies

Massive systems of stars, stellar remnants, interstellar gas, dust, and dark matter, bound together by gravitational attraction.