The Capital Asset Pricing Model (CAPM) Is a Mathematical Model

question 43

Multiple Choice

The Capital Asset Pricing Model (CAPM) is a mathematical model that depicts the

• A) positive relationship between risk and return.
• B) exact price that an investor should be willing to pay for any given investment.
• C) standard deviation between a risk premium and an investment's expected return.
• D) difference between a risk- free return and the expected rate of inflation.

---

Definitions:

Electroconvulsive Shock Therapy

A psychiatric treatment in which seizures are electrically induced in patients to provide relief from mental disorders.

Psychoanalytic

Relating to a theory of psychology which emphasizes unconscious psychological processes and is credited to Freud.

Positive Transference

The phenomenon in psychotherapy where a patient projects positive feelings for someone from their past onto the therapist.

Free Association

A psychoanalytic technique where the patient speaks freely to uncover repressed thoughts and feelings, facilitating the therapeutic process.