According to the Capital Asset Pricing Model, Which of the Following

question 44

Multiple Choice

According to the capital asset pricing model, which of the following shares should have the highest required rate of return?

• A) Beta Electronics because its standard deviation is highest.
• B) Alpha Automobiles because its beta coefficient is highest.
• C) Omega foods because the ration of standard deviation/beta is the lowest.
• D) Not enough information is given to answer this question.

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Definitions:

Schizophrenia

A mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Synapses

The junctions between neurons through which signals are transmitted.

Adolescence

The transitional stage of physical and psychological development that occurs between childhood and adulthood.

DSM

Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as a guide to the diagnosis of mental disorders.