Examlex

Solved

Comparison with Others in the Same Organization Doing Substantially Different

question 99

Multiple Choice

Comparison with others in the same organization doing substantially different jobs is called:


Definitions:

Capital Asset Pricing Model

A model used to determine the theoretical rate of return of an asset, considering the asset’s risk relative to that of the market.

Beta

A measure used in finance to describe the relationship of an investment's returns with those of the market; it indicates the investment's risk compared to the market.

Rate of Return

The increase or decrease in the value of an investment throughout a certain timeframe, represented as a portion of the investment's initial cost.

Risk Premium

The risk premium is the extra return above the risk-free rate that investors demand as compensation for the risk of investing in a particular asset.

Related Questions