The Theory That Says to Determine Right Action You Must

question 19

Multiple Choice

The theory that says to determine right action you must apply the egoistic principle to individual acts is called:

• A)Kantian egoism.
• B)nonconsequentialist egoism.
• C)rule-egoism.
• D)act-egoism.

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Definitions:

CAPM

Capital Asset Pricing Model; a formula used to determine the expected return on an investment, factoring in its risk relative to the market.

Risk-to-reward Ratio

A measure used by investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.

Constant

A fixed value that does not change in mathematical equations or in the context of specific calculations.

Security Market Line

A line that represents the relationship between the expected return of a market security and its risk, as measured by beta.