Which of the Following Is NOT a Key Variable in the Equation

question 68

Multiple Choice

Which of the following is NOT a key variable in the equation for the capital asset pricing model?

• A) the risk-free rate of interest
• B) the expected rate of return on the market portfolio
• C) the marginal tax rate
• D) All are important components of the CAPM.

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Definitions:

Sound Localization

The ability to determine the origin of a sound in space.

Infants

Very young children, especially those under one year of age.

Accuracy

The degree to which a measurement, calculation, or specification conforms to the correct value or a standard.

Visual Preference

The tendency to favor visual inputs or stimuli over those from other senses such as touch or hearing.