In Applying the Capital Asset Pricing Model (CAPM) to Estimate

question 17

Multiple Choice

In applying the Capital Asset Pricing Model (CAPM) to estimate a firm's cost of equity capital, the beta coefficient (β) in the model represents

• A) The expected dividend per share divided by the current market price per share of common stock.
• B) The cost of retained earnings.
• C) The yield-to-maturity on long-term bonds payable.
• D) A measure of the sensitivity of the firm's stock return to fluctuations in the returns of the overall market.
• E) The "market risk premium" for that firm's stock.

Appreciate the significance of discretionary and ministerial powers of administrative agencies.

Understand the concept of phylogenetic trees and their components (e.g., nodes, roots, and clades).

Describe the principles of evolutionary relationships and lineage divergence.

Explain the role of the molecular clock in estimating divergence times and evolutionary rates.