According to the Capital Asset Pricing Model (CAPM), Which One

question 66

Multiple Choice

According to the Capital Asset Pricing Model (CAPM) , which one of the following statements is false?

• A) The expected rate of return on a security increases in direct proportion to a decrease in the risk-free rate.
• B) The expected rate of return on a security increases as its beta increases.
• C) A fairly priced security has an alpha of zero.
• D) In equilibrium, all securities lie on the security market line.
• E) All of the statements are true.

Understand the concept of fundamental attribution error and its influencing factors.

Identify the impact of cognitive biases on perception and decision-making.

Distinguish between internal and external attributions.

Analyze factors that contribute to happiness and counterfactual thinking.

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Definitions:

Spear Phishing

A targeted type of social engineering in which the attackers know some information about someone that lulls them into thinking an email or other electronic message is safe.

Legitimate Source

A trusted and credible origin or provider of information, goods, or services, often verified through established reputation or credentials.

Personal Information

Any information related to an identifiable individual, including names, addresses, phone numbers, and email addresses.

Ransomware

A security situation in which a hacker has restricted access to a device until the user is pressured to pay money to regain access.