If the Market Risk Premium Is (Rm - Rf) Is

question 18

Multiple Choice

If the market risk premium is (rm - rf) is 8%, then according to the CAPM, the risk premium of a stock with beta value of 1.7 must be:

• A) less than 12%
• B) 12%
• C) greater than 12%
• D) cannot be determined

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Definitions:

Repetitive Behavior

Actions or sequences of behavior that are repeated frequently, often with no apparent goal or function, commonly observed in autism spectrum disorders.

Delayed Echolalia

The repetition of words or phrases spoken by others, either immediately or after a delay, often observed in autism spectrum disorder as a form of communication or self-stimulation.

Intellectual Disability

A term used to describe a reduced ability to understand new or complex information, learn new skills, and cope independently, which manifests before adulthood.

Profound ID

Profound Intellectual Disability is a level of intellectual disability characterized by extremely low intellectual functioning and significant limitations in adaptive behaviors.