Which One of the Following Should Earn the Most Risk

question 18

Multiple Choice

Which one of the following should earn the most risk premium based on CAPM?

• A)diversified portfolio with returns similar to the overall market
• B)stock with a beta of 1.38
• C)stock with a beta of 0.74
• D)U.S. Treasury bill
• E)portfolio with a beta of 1.01

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Definitions:

Marginalized Groups

Communities or segments of society that experience discrimination and exclusion due to various factors like race, economic status, gender identity, or sexual orientation.

Police Violence

The use of excessive or unnecessary force by police officers against civilians, often tied to discussions of systemic racism and justice reform.

Hashtag Activism

The use of hashtags on social media platforms to foster discourse, raise awareness, and promote social or political causes.

Democratic Process

The system and methods used within a democracy that allow citizens to participate in decision-making, usually through voting and representation.