In the Capital Asset Pricing Model, the Beta Coefficient Is

question 55

Multiple Choice

In the capital asset pricing model, the beta coefficient is a measure of__________ risk and an index ofthe degree of movement of an asset's return in response to a change in__________ .

• A) nondiversifiable; the market return
• B) diversifiable; the bond index rate
• C) nondiversifiable; the Treasury Bill rate
• D) diversifiable; the prime rate

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Definitions:

Temporal Summation

Summation of the local potential that results when two or more action potentials arrive at a single synapse in rapid succession.

Action Potentials

Electrical impulses that travel along the membrane of a neuron signaling the cell to perform its function.

Synapse

The junction between two nerve cells, where electrical signals are transmitted from one neuron to another.

Sensory Neurons

Nerve cells responsible for converting external stimuli from the organism's environment into internal electrical impulses.