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:

Taxable Amount

The taxable amount is the portion of income or a financial transaction that is subject to taxes according to the laws and regulations of the tax jurisdiction.

Tax Return

A form or forms filed with a taxing authority that report income, expenses, and other pertinent tax information, used to calculate tax liability.

Forgiveness Of Loan Repayment

A situation where a lender decides not to require the borrower to repay some or all of an outstanding loan, potentially resulting in taxable income for the borrower.

Income

Income refers to the money received by a person or organization for work, from investments, or from various other sources.