According to the Capital Asset Pricing Model (CAPM),which One of the Following

question 129

Multiple Choice

According to the Capital Asset Pricing Model (CAPM) ,which one of the following statements is false?

• A)The expected rate of return on a security increases in direct proportion to a decrease in the risk-free rate.
• B)The expected rate of return on a security increases as its beta increases.
• C)A fairly priced security has an alpha of zero.
• D)In equilibrium, all securities lie on the security market line.
• E)All of the above statements are true.

---

Definitions:

HR Strategies

Comprehensive plans developed by an organization's human resource department to align HR policies and practices with the objectives of the company.

Competitive Intelligence

The gathering and analysis of information about competitors for strategic purposes.

Environmental Scanning

The process of systematically collecting information about external influences and trends to identify opportunities and threats for strategic planning.

Environmental Intelligence

The gathering and analysis of data regarding the environment, used to guide business or policy decisions in a sustainable direction.