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:

Sigmund Freud's Theory

A set of psychoanalytic theories developed by Sigmund Freud that emphasize unconscious processes, childhood experiences, and sexuality in shaping human behavior.

Social Interaction

The process by which individuals act and react in relation to others, forming the basis of social relationships.

Pleasure Principle

A theory in psychoanalytic psychology proposing that people seek pleasure and avoid pain in order to satisfy biological and psychological needs.

Negative Evaluation

The process of critically assessing something with unfavorable or disapproving conclusions.