Consider the Capital Asset Pricing Model

question 1

Multiple Choice

Consider the capital asset pricing model.The market degree of risk aversion,A,is 3.The variance of return on the market portfolio is .0225.If the risk-free rate of return is 4%,the expected return on the market portfolio is _________.

• A) 6.75%
• B) 9.0%
• C) 10.75%
• D) 12.0%

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Definitions:

Conservative

A political and social philosophy that promotes retaining traditional social institutions in the context of culture and civilization.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group compared to when they work alone.

Individual Productivity

The rate or efficiency at which an individual can produce outcomes or complete tasks, often in a work or academic setting.