According to the Capital Asset Pricing Model, Which of the Following

question 34

Multiple Choice

According to the capital asset pricing model, which of the following stocks should have the highest required rate of return? $\begin{array}{c}\begin{array}{lll}\underline{\text {Stock Name}}\\\text {Alpha Autom obiles}\\\text {Beta Electronics}\\\text {Omega Foods}\end{array}\begin{array}{c}\underline{\text { Standard Deviation }} \\19.0 \% \\28.0 \\8.0 \end{array}\begin{array}{c}\underline{\text { Beta}} \\1.8\% \\1.1 \\0.7\end{array}\end{array}$

• A)Beta Electronics because its standard deviation is highest.
• B)Alpha Automobiles because its beta coefficient is highest.
• C)Omega foods because the ration of standard deviation/beta is the lowest.
• D)Not enough information is given to answer this question.

---

Definitions:

Transformational Scaffolding

describes an educational strategy where support is progressively adjusted to meet the learner's increasing competence, fostering their ability to achieve tasks independently.

Concrete Interventions

Practical and specific actions or strategies designed to address specific problems or issues directly and effectively.

Formal Operations

Formal operations is a stage in Piaget's theory of cognitive development where individuals develop the ability to think abstractly, reason logically, and plan systematically.

Social Interactions

The ways in which individuals interact with each other, influenced by social norms, cultures, and personal relationships.