The ____ Is Not a Factor Used in the Capital

question 85

Multiple Choice

The ____ is not a factor used in the capital asset pricing model (CAPM) to derive the return of an asset.

• A) prevailing risk-free rate
• B) dividend growth rate
• C) market return
• D) covariance between the asset's returns and market returns
• E) All of the above are factors used in the CAPM.

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Definitions:

Filial piety

A virtue of respect and devotion to one's parents and ancestors in many cultures, particularly influential in Confucian societies.

Cultural experiences

Interactions, practices, and activities that give individuals insight into or an understanding of different cultures, traditions, and ways of life.

Social organizations

Structured groups of people who come together to pursue common interests or fulfill societal functions, such as families, businesses, and governmental bodies.

Openness

The quality of being open and willing to receive new ideas, feedback, or experiences.