Which One of the Following Is the Theory That States

question 5

Multiple Choice

Which one of the following is the theory that states that the value of a security is dependent upon the pure time value of money, the reward for bearing systematic risk, and the amount of systematic risk?

• A)reward-to-risk theory
• B)capital asset pricing model
• C)risk premium proposal
• D)market slope hypothesis
• E)security market line proposition

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Definitions:

Historical Perspective

An approach to understanding and analyzing events or subjects based on their development over time.

Just-In-Time (JIT) System

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs through the timely creation or acquisition of materials.

Production Workers

Production workers are employees involved in the manufacturing process, directly contributing to the creation of products through tasks such as assembly, machining, and inspection.

Lean Business Model

A strategy focused on creating value for customers with minimal waste and resources, emphasizing flexibility and efficiency.