The _____ in the Constitution,Article VI,Section 2,sets Forth the Principle

question 8

Multiple Choice

The _____ in the Constitution,Article VI,Section 2,sets forth the principle that when the federal government passes a law within its powers,the states are bound by that law.

• A) First Amendment
• B) separation of powers clause
• C) supremacy clause
• D) Tenth Amendment

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Definitions:

Risk-free Rate

The return on an investment with zero risk, typically represented by the yield on government securities.

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks, used in finance to price risky securities.

William Sharpe

An economist who created the Sharpe Ratio, a measure to calculate risk-adjusted return.

SML (Security Market Line)

A line in the Capital Asset Pricing Model that shows the relationship between the expected return of a security and its risk.