The Capital Asset Pricing Model Asserts That the Return Is

question 51

Multiple Choice

The Capital Asset Pricing Model asserts that the return is equal to the risk-free rate plus a risk premium for systematic risk.

• A) realised
• B) ex-post
• C) holding period
• D) expected

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Definitions:

Sales Tax

A tax imposed by a government on the sale of goods and services.

Credit Period

Length of time allowed for payment of goods sold on account.

Discount Period

The time frame in which a payment can be made at a reduced rate.

Contra-revenue Account

An account that offsets revenue accounts on the income statement, such as sales returns, allowances, and discounts.