The Capital Asset Pricing Model Asserts That the ________ Return

question 6

Multiple Choice

The Capital Asset Pricing Model asserts that the ________ return is equal to the risk-free rate plus a risk premium for systematic risk.

• A)realized return
• B)expected return
• C)holding period return
• D)ex-post return

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Definitions:

Innovation

The act of introducing something new or making improvements to existing products, services, methodologies, or technologies.

Widespread Diffusion

The broad and extensive spread of something, such as a technological innovation or cultural idea, across a wide area or among a large number of people.

Oligopolists

Firms or entities that are part of an oligopoly, a market dominated by a small number of large suppliers, leading to limited competition.

R&D

Research and Development; activities in connection with corporate or governmental innovation, encompassing the work towards the development of new products or procedures.