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:

Individuals

Persons or entities regarded as separate and distinct from others.

Right Of Privacy

The right to be free from intrusion or interference in one's private affairs and communications by others, including governments and corporations.

Right Of Privacy

The right of an individual to be free from intrusion or interference in their personal life.

Deontology Approach

An ethical theory that emphasizes duty, rules, and obligations when making moral decisions.