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:

Cognitive Therapy

A form of psychotherapy that focuses on changing unhealthy thinking patterns to improve emotional regulation and develop personal coping strategies.

Depression

A common and serious medical illness that negatively affects how you feel, the way you think, and how you act, characterized by persistent feelings of sadness and/or a loss of interest in activities.

Equivalent Outcomes

A concept suggesting that different therapeutic approaches may yield similar results.

Two-Year Follow-Up

A period of observation or study extending two years beyond a particular point, such as the completion of a treatment or intervention, to assess long-term outcomes.