Both the CAPM and APT Suggest That an Asset Should

question 38

Multiple Choice

Both the CAPM and APT suggest that an asset should be priced so that it has a higher expected return

• A)when it has a greater systematic risk.
• B)when it has a greater risk in isolation.
• C)when it has a lower systematic risk.
• D)when it has a lower systematic risk and a lower risk in isolation.

---

Definitions:

Redo Action

The command used to reapply the last action that was undone.

Repeat Action

A function in various software that allows the user to perform the last action again, often activated by a specific command or button.

Vertical Ruler

A tool displayed along the side of a document window in word processing software, used for measuring and aligning text, images, and other elements vertically.

Zoom Level

The degree to which a document or image can be enlarged or reduced for viewing or editing.