Which of the Following Is an Implication of the CAPM

question 70

Multiple Choice

Which of the following is an implication of the CAPM?

• A) A security with a beta of 0 has an expected return of 0.
• B) Investors are not compensated for bearing diversifiable risk.
• C) The risk-return relationship is nonlinear.
• D) There are two risk factors that drive asset returns.

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Definitions:

Sleep Apnea

A sleep disorder marked by pauses in breathing or periods of shallow breathing during sleep, leading to disrupted sleep and other health issues.

Breathing While Asleep

The automatic process of respiration during sleep, which includes both inhaling and exhaling air to provide oxygen to the body and remove carbon dioxide.

Night Terrors

Intense episodes of fear that occur during deep, non-REM sleep, often resulting in screaming, thrashing, or panic in the affected person.

Sleep Apnea

A condition where an individual experiences interruptions in breathing or instances of light breathing while sleeping.