In the Capital Asset Pricing Model, Which of the Following

question 40

Multiple Choice

In the Capital Asset Pricing Model, which of the following factors are used to determine the required rate of return?
I. the risk-free interest rate
II. future cash flows
III. expected return on the market portfolio
IV. beta

• A) I and II only
• B) I, II and III only
• C) II, III and IV only
• D) I, III and IV only

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Definitions:

Precautionary Principle

A strategy to cope with possible risks where scientific understanding is yet incomplete, advocating preventive action in the face of uncertainty.

Environmental Policy

A set of laws and regulations aimed at protecting the environment from harmful actions or providing guidelines for the sustainable use of natural resources.

Grassroots Action

A movement or campaign driven by the population at the local level, often advocating for social, environmental, or political change.

Alliances

Associations formed between countries, organizations, or individuals for mutual benefit or to achieve common goals.