Which of the Following Are the Two Primary Advantages of CAPM

question 68

Multiple Choice

Which of the following are the two primary advantages of CAPM?
I.Simplicity
II.Absence of estimation error
III.Applicability to both dividend and nondividend paying firms
IV.Explicit adjustment for risk

• A)I and II
• B)II and III
• C)I and III
• D)III and IV
• E)I and IV

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Definitions:

Latent Learning

Learning that occurs without any obvious reinforcement or immediate demonstration of the learned behavior, which becomes apparent under different conditions.

Vicarious Learning

Learning that occurs by observing the actions, consequences, and behaviors of others rather than through direct experience.

Observational Learning

The process of learning behaviors through the observation of the behaviors of others.

Motivated

Refers to being eager and willing to engage in activities or tasks due to intrinsic or extrinsic factors.