Based on the Capital Asset Pricing Model,which One of the Following

question 50

Multiple Choice

Based on the capital asset pricing model,which one of the following must increase the expected return on an individual security,all else constant?

• A)An increase in the risk level of that security as measured by the standard deviation
• B)An increase in the risk-free rate given a security beta of 1.42
• C)A decrease in the market rate of return given a security beta of 1.13
• D)A decrease in the market rate of return given a security beta of .78
• E)A decrease in the risk-free rate given a security beta of 1.06

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Power

The ability or capacity to direct or influence the behavior of others or the course of events.

Inequality

The state of not being equal, especially in status, rights, and opportunities.

Affordable Housing

housing units that are reasonably priced and accessible to individuals and families with moderate to low incomes.

Coalition

A temporary alliance or partnering of groups in order to achieve a common purpose or to engage in joint activity.