The Most Uncertain Value Used in the Capital Asset Pricing

question 9

Multiple Choice

The most uncertain value used in the Capital Asset Pricing Model is

• A) beta.
• B) the risk-free rate.
• C) expected return on the market.
• D) all are equally uncertain.

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Definitions:

Null Hypothesis

A hypothesis in statistical analysis that proposes there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

Groups

Sets of subjects or variables categorized together for analysis or study.

Null Hypothesis

A hypothesis that states there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

Groups

In research, these refer to sets of subjects or items that have been separated based on characteristics or treatment conditions for analysis.