When Using the CAPM to Estimate Long-Term Required Rates of Return

question 57

Multiple Choice

When using the CAPM to estimate long-term required rates of return, analysts will use which of the following rates in their calculation?

• A)T-bill rate
• B)long-term government bonds
• C)long-term corporate bonds
• D)prime rate

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Definitions:

Reinforced Behavior

Reinforced behavior refers to actions that are strengthened and more likely to be repeated due to positive or negative reinforcements, such as rewards or avoidance of adverse outcomes.

Social Mechanisms

Processes and structures within society that contribute to particular social outcomes, influencing how societal norms and interactions occur.

Gender Distinctions

Socially and culturally constructed differences between males and females, often based on attributes, roles, and expectations.

Interactional

Pertaining to or involving interaction between individuals or entities.