According to the CAPM

question 46

Multiple Choice

According to the CAPM:

• A) the expected return on a security is negatively and non-linearly related to the security's beta.
• B) the expected return on a security is negatively and linearly related to the security's beta.
• C) the expected return on a security is positively and linearly related to the security's variance.
• D) the expected return on a security is positively and non-linearly related to the security's beta.
• E) the expected return on a security is positively related to the security's beta.

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Definitions:

Trade Surpluses

A situation in which a country's exports exceed its imports, indicating a positive balance of trade.

Precious Metals

Metals of high economic value, such as gold, silver, and platinum, often used for investment or as currency.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.

Government Spending

Government spending involves expenditures by government bodies on public services, infrastructure, defense, social welfare, and more, impacting the economy’s overall fiscal stance.