According to the CAPM

question 39

Multiple Choice

According to the CAPM:

• A)the expected return on a security is negatively and non-linearly related to the security's beta.
• B)the expected return on a security is negatively and linearly related to the security's beta.
• C)the expected return on a security is positively and linearly related to the security's variance.
• D)the expected return on a security is positively and non-linearly related to the security's beta.
• E)the expected return on a security is positively and linearly related to the security's beta.

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Definitions:

Edward Titchener

A British psychologist who is best known for developing the theory of structuralism and for his use of introspection in psychological research.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning without considering thoughts or feelings.

Cognitive Neuroscience

Cognitive neuroscience is the academic field that studies the biological processes and aspects that underlie cognition, with a specific focus on the neural connections in the brain.

William James

A pioneering psychologist and philosopher whose work in the late 19th century contributed significantly to the fields of psychology, particularly in the areas of education, religion, and pragmatism.