The CAPM Assumes That the Only Risk of Concern to the Investor

question 33

Multiple Choice

The CAPM assumes that the only risk of concern to the investor is ____, which is measured by ____.

• A) unsystematic risk; beta
• B) systematic risk; the return to the market portfolio
• C) systematic risk; beta
• D) unsystematic risk; the return to the market portfolio

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Definitions:

Craving

A powerful desire for something, often used in the context of addictive substances.

Withdrawal

A set of symptoms that occur upon the discontinuation or decrease in intake of a substance that has been used regularly or in psychological contexts, the process of becoming emotionally detached.

Alcohol Dependence

A medical condition characterized by an impaired ability to stop or control alcohol use despite adverse social, occupational, or health consequences.

Tremors

Involuntary, rhythmic muscle movements involving oscillations or shaking of one or more body parts.