According to the Capital Asset Pricing Model,the Expected Return on a Security

question 20

Multiple Choice

According to the capital asset pricing model,the expected return on a security is

• A)negatively and linearly related to the security's beta.
• B)positively and linearly related to the security's beta.
• C)positively and nonlinearly related to the security's beta.
• D)positively and linearly related to the security's variance.
• E)negatively and nonlinearly related to the security's beta.

---

Definitions:

Journal Article

A piece of writing published in a scholarly journal, usually peer-reviewed, that presents original research findings or reviews existing research in a specific field.

Sequencing

The arrangement of events, objects, or actions in a particular order or sequence.

Dependent Variable

The factor in a study that is anticipated to vary following alterations made to the independent variable.

Grammatical Errors

Mistakes made in the use of grammar, leading to incorrect structure or usage in written or spoken language.