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

question 58

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 return.
• C) proportionate to the stock's beta.
• D) greater than the risk-free rate of return.

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Definitions:

Political Activity

Involves actions or movements aimed at influencing or participating in the governance of a country or community.

Birth-Control Pill

A medication taken orally by women to prevent pregnancy, first approved for contraceptive use in the United States in 1960.

Sexual Customs

Practices and behaviors relating to sexual activities, relationships, and norms that are considered acceptable or traditional within a specific culture or society.