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.

---

Definitions:

Fixed-ratio Schedule

A fixed-ratio schedule is a type of operant conditioning reinforcement schedule where a response is reinforced only after a specified number of responses, leading to a high, steady rate of responding.

Variable-ratio Schedule

In operant conditioning, it is a reinforcement strategy where a response is rewarded after an unpredictable number of responses, leading to high and steady response rates.

Successive Approximation

A method used in behavior therapy to gradually achieve a target behavior through small steps towards the goal.

Fixed-interval Scheduling

A type of operant conditioning reinforcement schedule where rewards are given after a fixed time period, causing a scalloped pattern of response rates.