Within the Capital Asset Pricing Model

question 21

Multiple Choice

Within the capital asset pricing model

• A) the risk-free rate is usually higher than the return in the market.
• B) the higher the beta, the lower the required rate of return.
• C) beta measures the volatility of an individual stock relative to a stock market index.
• D) dividends are considered in the calculations.

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Definitions:

Opinions

Statements or beliefs about something, not necessarily based on facts or knowledge.

Puberty

The period during which adolescents reach sexual maturity and become capable of reproduction.

Menarche

The initial instance of menstrual flow in a female, signifying the beginning of fertility.

Androgyny

Exhibiting both traditional male and female psychological characteristics, or a lack of clear masculine or feminine identity.