The CAPM Assumes That the Only Risk of Concern to the Investor

question 52

Multiple Choice

The CAPM assumes that the only risk of concern to the investor is , which is measured by .

• A)Unsystematic risk, beta
• B)Systematic risk, the return to the market portfolio
• C)Systematic risk, beta
• D)Unsystematic risk, the return to the market portfolio

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Definitions:

Class Consciousness

A social theory concept referring to the awareness and understanding that individuals have of their social class and its implications in a class-based society.

Cultural Standards

Norms and values that are widely accepted and practiced within a specific culture or society, shaping behavior and perceptions.

Skewed Salary Range

A disparity in pay distribution where a large difference exists between the highest and lowest earners within an organization or economy.

Worker Participation

The involvement of employees in the decision-making processes of an organization, often aimed at improving morale and productivity.