The CAPM Is a Theory of the Relationship Between Risk

question 99

True/False

The CAPM is a theory of the relationship between risk and return that states that the expected risk premium on any security equals its beta times the market return.

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Definitions:

Cladograms

A diagram used in cladistics which shows relations among organisms.

Molecular Clocks

Methods used to estimate the time of evolutionary events based on the hypothesis that genetic mutations accumulate at a predictable rate over time.

Fishlike Vertebrates

Aquatic animals featuring a backbone, including both true fish and fish-shaped species with similar living habitats and structures.

Million Years

A time unit used in geology and astronomy to describe extremely long periods, typically used in the context of the age of the earth or the distance of cosmological objects.