Which of the Following Terms Does NOT Appear in the CAPM

question 67

Multiple Choice

Which of the following terms does NOT appear in the CAPM equation?

• A) The risk- free rate.
• B) The dividend ratio.
• C) The expected return on the market portfolio.
• D) The beta of the share.

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Definitions:

Goal-setting

The action of establishing achievable and measurable objectives to guide personal or professional development.

Self-fulfilling Prophecy

A self-fulfilling prophecy is a belief or expectation that influences behavior in a way that causes the belief to become true.

Directive Leadership

A leadership style characterized by giving direct orders and instructions, with a clear line of authority and control.

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