According to the Capital Asset Pricing Model (CAPM),the Expected Rate

question 11

Multiple Choice

According to the Capital Asset Pricing Model (CAPM) ,the expected rate of return on any security is equal to

• A) R_f + β[E(R_M)].
• B) R_f + σ[E(R_M)- R_f].
• C) R_f + β[E(R_M)- R_f].
• D) E(R_M)+ R_f.
• E) none of these.

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Definitions:

Method Contained

This refers to a function or a procedure defined within a class in object-oriented programming.

Dot Operator

A syntax element used in object-oriented programming to access the properties or methods of an object.

Syntax Error

A mistake in the set of rules that defines the combinations of symbols that are considered to be a correctly structured document or fragment in programming languages.

Math.pow

A method in Java that raises a number to the power of another number.