Which One of the Following Is the Theory Which States

question 86

Multiple Choice

Which one of the following is the theory which states that the value of a security is dependent upon the pure time value of money,the reward for bearing systematic risk,and the amount of systematic risk?

• A) reward-to-risk theory
• B) capital asset pricing model
• C) risk premium proposal
• D) market slope hypothesis
• E) security market line proposition

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Definitions:

Mixed Economy

An economic system blending elements of market, command, and traditional economies, featuring both private and public ownership of resources.

Public Enterprises

Government-owned organizations that operate in the commercial sector, intending to provide public services or generate revenue.

Core Inflation Rate

Inflation rate of an economy after energy and food prices are removed.

Energy And Food Prices

The costs associated with purchasing fuel, electricity, and edible items, which can significantly impact economic and living conditions.