The Basic Tenet of the CAPM Is That a Stock's

question 17

Multiple Choice

The basic tenet of the CAPM is that a stock's expected risk premium should be:

• A)greater than the expected market return.
• B)proportionate to the market risk premium.
• C)proportionate to the stock's Beta.
• D)greater than the risk-free rate of return.

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Definitions:

Secure And Confident

Describes a state of being wherein an individual feels self-assured and stable in their abilities, decisions, and self-worth.

Innermost Thoughts

The most personal, private, or deeply held beliefs or ideas one may have.

Observable Patterns

Regular and identifiable behaviors, processes, or trends that can be seen or tracked over time.

Communication Style

The manner in which individuals express themselves when interacting with others, influenced by personal and cultural factors.