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The Size Factor Used to Adjust the Capital Asset Pricing

question 92

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The size factor used to adjust the capital asset pricing model serves as a proxy for factors such as smaller firms being subject to higher default risk and generally being less liquid than large capitalization firms.


Definitions:

Deity

A god or goddess in a polytheistic religion, considered divine and often worshipped.

Daedalus

A skilled craftsman and artist in Greek mythology, known for designing the Labyrinth for King Minos of Crete and creating wings for himself and his son Icarus to escape captivity.

Geometric Sculpture

Art that utilizes geometric forms and shapes in its construction, often associated with modern and abstract art movements.

Laocoön

An ancient sculpture that depicts the Trojan priest Laocoön and his sons being attacked by sea snakes, significant in the study of art history for its expression of suffering.

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