According to the Capital Asset Pricing Model (CAPM)

question 31

Multiple Choice

According to the Capital Asset Pricing Model (CAPM) ,

• A) a security with a positive alpha is considered overpriced.
• B) a security with a zero alpha is considered to be a good buy.
• C) a security with a negative alpha is considered to be a good buy.
• D) a security with a positive alpha is considered to be underpriced.
• E) none of these.

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Definitions:

Bones

The rigid organs that constitute part of the endoskeleton of vertebrates, providing support and protection and enabling movement.

Fins

External appendages on fishes and some other aquatic animals, used primarily for movement, steering, and balance in water.

Jawless Fish

Primitive vertebrates lacking jaws, such as lampreys and hagfish, forming the class Agnatha.

Cartilaginous Skeletons

Skeletons made of cartilage rather than bone, common in sharks, rays, and other elasmobranch fish.