To Measure Risk, the Capital Asset Pricing Model Uses​

question 39

Multiple Choice

To measure risk, the capital asset pricing model uses​

• A) ​beta
• B) ​an asset's standard deviation
• C) ​the volatility of an asset's cash flows
• D) ​the term during which the asset is held

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Shut Down

The process of ceasing operations, often temporarily, as a strategic or economic decision by a business.

Short Run

A period in economics where at least one input is fixed and cannot be changed.

Average Variable Costs

The total variable costs divided by the quantity of output produced. It represents the variable cost per unit of output.