Capital Asset Pricing Theory Asserts That Portfolio Returns Are Best

question 107

Multiple Choice

Capital Asset Pricing Theory asserts that portfolio returns are best explained by:

• A)economic factors.
• B)specific risk.
• C)systematic risk.
• D)diversification.
• E)none of the above.

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Definitions:

Crust

The thin, solid, outermost layer of the Earth, lying above the mantle.

Himalaya

A major mountain range in Asia, forming a barrier between the Plateau of Tibet to the north and the alluvial plains of the Indian subcontinent to the south.

Lithosphere

The rigid outer layer of the Earth, comprising the crust and the upper mantle, which is involved in tectonic processes like plate movements.

Earth's Peak

Geological high points on Earth's surface, such as mountains or hills, formed by various geological processes including tectonic movements and erosion.