Which of the Following Is Not an Input to the Capital

question 23

Multiple Choice

Which of the following is not an input to the capital asset pricing model?

• A)standard deviation
• B)beta
• C)risk-free rate
• D)expected return on the market portfolio

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Definitions:

Dividends Paid

Payments made by a corporation to its shareholder members from its earnings or profits.

Fair-Value Method

An accounting approach where assets and liabilities are listed at their fair value, reflecting their current market price.

Majority-Owned Investment

An investment in which the parent company owns more than 50% of the subsidiary's voting stock.

Initial Value Method

An accounting method that records assets and investments at their original cost without adjusting for increases or decreases in market value.