The Capital Asset Pricing Model (CAPM)relates

question 12

Multiple Choice

The Capital Asset Pricing Model (CAPM) relates:

• A)expected return to beta.
• B)expected return to risk.
• C)expected risk to beta.
• D)expected return to standard deviation.

Distinguish between different types of auctions and their roles in buying and selling processes.

Identify the components and functions of different online trading communities and platforms.

Understand the significance of buying situations that require changes in product specifications, price, delivery schedules, or suppliers.

Recognize the contribution of e-marketplaces to facilitating real-time exchanges of information, money, products, and services.

---

Definitions:

Income Elasticity

A measure of how the demand for a good or service changes with a change in consumers' income.

Normal Good

A type of good for which demand increases when consumer income rises, and decreases when consumer income decreases.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.

Income Elasticity

A measure of how much the demand for a good or service changes with a change in consumers' income, indicating the nature of the good as either a necessity or a luxury.