According to Capital Asset Pricing Theory, the Key Determinant of Portfolio

question 59

Multiple Choice

According to capital asset pricing theory, the key determinant of portfolio returns is ________.

• A) the degree of diversification
• B) the systematic risk of the portfolio
• C) the firm-specific risk of the portfolio
• D) economic factors

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Definitions:

Talent Pool

A database or list of potential candidates that an organization can draw from when filling positions.

Succession Planning

The strategy of identifying and developing internal personnel with the potential to fill key business leadership positions in the organization.

Replacement Planning

A part of succession planning focused on identifying and preparing suitable employees to replace key positions within an organization.

Managerial Positions

Roles within an organization that involve oversight, decision-making, and leadership responsibilities over teams or departments.