According to the Capital Asset Pricing Model,_________

question 15

Multiple Choice

According to the capital asset pricing model,_________.

• A) all securities' returns must lie on the capital market line
• B) all securities' returns must lie on the security market line
• C) the slope of the security market line must be less than the market risk premium
• D) any security with a beta of 1 must have an excess return of zero

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Definitions:

Leisure

refers to free time spent away from business, work, domestic chores, and education, as well as necessary activities such as eating and sleeping.

Legitimizing Myths

Beliefs or narratives used to justify and maintain social inequalities or the status quo by presenting them as natural or inevitable.

Inequalities

The condition of lacking equality, particularly in terms of status, rights, and chances.

Dominant Response

The most likely reaction or behavior to occur in a given situation, often under conditions of stress or high arousal.