The Basic Tenet of the CAPM Is That a Stock's

question 95

Multiple Choice

The basic tenet of the CAPM is that a stock's expected risk premium should be:

• A)Greater than the expected market return
• B)Proportionate to the market risk premium
• C)Proportionate to the stock's Beta
• D)Greater than the risk-free rate of return

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Definitions:

National Labor Relations Board

A federal agency in the United States that oversees labor practices, ensuring the rights of employers and employees under labor laws.

Fair Labor Standards Act

A United States law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for full-time and part-time workers in the private sector and in federal, state, and local governments.

Wage-and-Hour Issues

Concerns related to compliance with laws governing the payment of wages, overtime, and the scheduling of working hours.

Norris-LaGuardia Act

A United States federal law enacted in 1932 that protects the right of workers to organize unions and prohibits employers from making anti-union contracts with employees.