According to the CAPM (Capital Asset Pricing Model),the Security Market

question 50

Multiple Choice

According to the CAPM (capital asset pricing model) ,the security market line is a straight line.The intercept of this line should be equal to

• A) zero
• B) the expected risk premium on the market portfolio
• C) the risk-free rate
• D) the expected return on the market portfolio

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Definitions:

Desired State

The preferred or targeted condition or status that an individual, group, or organization aims to achieve.

Standardized Way

A method or procedure that has been uniformly applied and adopted across different situations or environments to ensure consistency.

Existing State

The current condition or situation of a system, organization, or individual before any changes or interventions.

Desired States

refer to the preferred or targeted conditions or outcomes that individuals or organizations aim to achieve.