Which of the Following Assumes That the CAPM Is the Appropriate

question 2

Multiple Choice

Which of the following assumes that the CAPM is the appropriate benchmark?

• A) Jensen's alpha
• B) Sharpe index
• C) Treynor index
• D) none of these choices

---

Definitions:

Imports

Goods or services brought into a country from abroad for sale or use.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay, representing a measure of consumer benefit.

Tariff

A tax imposed by a government on goods and services imported from other countries, used to control trade.

Restrictions

Rules or limitations placed on activities, movements, or trade to control or regulate actions.