One Key Conclusion of the Capital Asset Pricing Model Is

question 65

True/False

One key conclusion of the Capital Asset Pricing Model is that the value of an asset should be measured by considering both the risk and the expected return of the asset, assuming that the asset is held in a well-diversified portfolio.The risk of the asset held in isolation is not relevant under the CAPM.

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Definitions:

Brain Changes

Alterations in the structure, function, or chemistry of the brain due to various factors such as learning, aging, injury, or disease.

Adolescence

is a developmental stage between childhood and adulthood characterized by significant physical, psychological, and social changes.

Zygote

The initial cell formed when a new organism is conceived, resulting from the combination of a sperm cell and an egg cell.

Embryo

An early stage of development in multicellular organisms, in humans, it refers to the stage after fertilization and before becoming a fetus.