Which of the Following Is a Model That Includes an Equation

question 12

Multiple Choice

Which of the following is a model that includes an equation that relates a stock's required return to an appropriate risk premium?

• A) asset pricing
• B) behavioral finance
• C) beta
• D) efficient markets

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Definitions:

Income

The financial gain received by an individual or a business in exchange for providing goods, rendering services, or through investing capital.

Retained Earnings

The part of a company's net earnings not paid out as dividends but kept within the company.

Service Period

The duration for which a service is provided or expected to be provided, often used in the context of accounting for employee benefits or service contracts.