Capital Asset Pricing Theory Asserts That Portfolio Returns Are Best

question 22

Multiple Choice

Capital asset pricing theory asserts that portfolio returns are best explained by

• A)economic factors.
• B)specific risk.
• C)systematic risk.
• D)diversification.

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Definitions:

Burritos

A Mexican dish consisting of a flour tortilla wrapped or folded around a filling typically including beans, cheese, and meats.

Income

The money received by a person or organization, typically in exchange for goods, services, or investments.

Total Utility

The complete satisfaction or pleasure a consumer derives from consuming a certain quantity of a good or service.

Marginal Utility

The extra pleasure a customer receives from using an additional unit of a product or service.