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:

Undifferentiated Targeting Strategy

A marketing strategy a firm can use if the product or service is perceived to provide the same benefits to everyone, with no need to develop separate strategies for different groups.

Marketers

Professionals involved in the process of promoting, selling, and distributing a product or service.

Pencils

Writing instruments made of graphite (or a similar substance) encased in wood or a mechanical holder, used for drawing or writing.

Market Segments

Divisions within a broader market consisting of customers with similar characteristics, needs, or behaviors.