The CAPM Assumes That the Only Risk of Concern to the Investor

question 52

Multiple Choice

The CAPM assumes that the only risk of concern to the investor is , which is measured by .

• A)Unsystematic risk, beta
• B)Systematic risk, the return to the market portfolio
• C)Systematic risk, beta
• D)Unsystematic risk, the return to the market portfolio

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Definitions:

Preganglionic Axons

Axons that originate from neurons located in the brainstem or the spinal cord and terminate in autonomic ganglia, part of the autonomic nervous system.

Adrenal Cortex

The outer portion of the adrenal glands that produces steroid hormones such as cortisol, aldosterone, and androgens.

Parasympathetic Ganglia

Clusters of nerve cell bodies in the parasympathetic division of the autonomic nervous system that transmit signals to various body organs.

Receptor Molecules

Proteins located on the cell surface or within cells that bind to specific molecules like hormones, antigens, or neurotransmitters, triggering a specific cellular response.