CAPM States That the Investment's Expected Return Should Match the Expected

question 85

Multiple Choice

CAPM states that the investment's expected return should match the expected return of ________ portfolio with the same level of market risk.

• A) the capital market line
• B) efficient
• C) single security
• D) diversified

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Definitions:

Frito-Lay's

A subsidiary of PepsiCo that manufactures and sells a wide range of snack foods including chips and crisps.

Licensing

Involves granting permission to an individual or entity to use intellectual property, such as patents, trademarks, or technology, under agreed terms and conditions.

Low-Risk

Pertains to investments or decisions that have a relatively small chance of resulting in financial loss or negative outcomes.

Local Manufacturing

The production of goods within a specific geographic region, typically emphasizing the benefits of reduced transport costs, supporting local economies, and minimizing environmental impact.