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:

Snap Judgments

Immediate conclusions or decisions made without thorough consideration, often based on first impressions.

Primacy Judgments

The tendency for the first items presented in a series to be better remembered or more influential than later items.

Attributional Judgments

The process of explaining the causes of behaviors and events, which can influence personal perceptions and social interactions.

Person Perception

The process by which individuals form impressions of others and make judgments about their attributes and characteristics.