The Prime Rate Is Commonly Used as a Proxy for the Risk-Free

question 81

True/False

The prime rate is commonly used as a proxy for the risk-free rate in the capital asset pricing model (CAPM).

---

Definitions:

Subjects

Entities or individuals that are being studied, observed, or used as participants in an experiment.

Social Science Research

The study of society and social relationships through various methods of empirical investigation and critical analysis to develop a body of knowledge about social order and social change.

Scientific Theories

Systematically organized knowledge applicable in a relatively wide variety of circumstances, especially a system of assumptions, accepted principles, and rules of procedure to analyze, predict, or explain the natural phenomena.

Inconsistent Statement

A situation where two or more statements are contradictory, making them unable to be true at the same time.