Which of the Following Is Incorrect Regarding the Capital Asset

question 56

Multiple Choice

Which of the following is incorrect regarding the capital asset pricing model (CAPM) ?

• A) It is sometimes used to estimate the required rate of return for any firm with publicly traded stock.
• B) It is based on the premise that the only important risk of a firm is systematic risk.
• C) It is concerned with unsystematic risk.
• D) All of the above are true.

Recognize the benefits and challenges of forming free-trade zones.

Understand the legal roles and responsibilities of promoters, directors, and agents in the formation and operation of a corporation.

Comprehend the regulatory framework governing securities and the role of securities commissions.

Grasp the concept of fiduciary duties owed by directors, officers, and agents to the corporation and its shareholders.

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Definitions:

Intentional Tort

A wrongful act knowingly committed.

Assault

Any word or action intended to make another person apprehensive or fearful of immediate physical harm. A reasonably believable threat.

Battery

The intentional and offensive touching of another without lawful justification beyond a reasonable doubt. The standard used to determine the guilt or innocence of a person charged with a crime. To be guilty of a crime, a suspect must be proved guilty beyond and to the exclusion of every reasonable doubt.

Elements

Fundamental components or parts that together form a whole, often used in contexts such as scientific elements or legal requirements for proving a case.