The ____ Is Not a Factor Used in the Capital

question 23

Multiple Choice

The ____ is not a factor used in the capital asset pricing model (CAPM) to derive the return of an asset.

• A)prevailing risk-free rate
• B)dividend growth rate
• C)market return
• D)covariance between the asset's return and the market return
• E)All of these are factors used in the CAPM.

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Definitions:

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An official appointed to investigate individuals' complaints against maladministration, especially that of public authorities.

Designated Neutral

An assigned individual who remains unbiased and impartial, often used in conflict resolution or decision-making processes.

Third Party

A third party refers to an entity that is involved in a transaction or relationship but is not one of the principal parties, often providing a service or mediation.

Communication Process

The transfer of information from a sender to a receiver, involving the encoding, sending, receiving, and decoding of messages.