Within the Capital Asset Pricing Model

question 109

Multiple Choice

Within the capital asset pricing model:

• A) the risk-free rate is usually higher than the return in the market.
• B) the higher the beta the lower the required rate of return.
• C) beta measures the volatility of an individual stock relative to a stock market index.
• D) beta is added to the market risk free rate.

---

Definitions:

Collective Unconscious

A concept in psychology proposed by Carl Jung, suggesting that humanity shares a set of inherited, universal mental contents or archetypes.

Freud's Unconscious

A theory by Sigmund Freud which posits that part of the human mind is inaccessible to the conscious mind but affects thoughts and behavior.

Aggressiveness

Behavior characterized by anger or hostility, which can be physical or verbal, directed towards others or oneself.

Repressed Hostility

Unconscious anger and resentment that is suppressed and not outwardly expressed, thought to contribute to psychological distress.