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:

Cranberries

A type of small, acidic, red berry, commonly found in bogs or wetlands, used in a variety of foods and beverages.

Price Of Oil

The cost per barrel of crude oil, which fluctuates based on global market conditions, supply and demand, and geopolitical events.

Transportation Costs

Expenses associated with the movement of goods or people from one location to another.

Premium

A payment to an insurance company in return for the promise to pay a claim in certain states of the world.