Which of the Following Is Consistent with the CAPM and Efficient

question 12

Multiple Choice

Which of the following is consistent with the CAPM and efficient capital markets?

• A)A security with a beta of 1 has a return last year of 8% when the market has a return of 12%.
• B)Small stocks with a beta of 1.5 tend to have higher returns on average than large stocks with a beta of 1.5.
• C)A security with only diversifiable risk has an expected return that exceeds the risk-free interest rate.
• D)A security with only systematic risk has an expected return that exceeds the risk-free interest rate.

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Job Performance

The effectiveness and efficiency with which an individual fulfills their job duties and responsibilities.

Employee Thefts

Employee thefts refer to acts of stealing or misappropriation of resources, products, or money by individuals from their place of employment.

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Period of Unemployment

The duration during which an individual is without a job and actively seeking work.