In the Capital Asset Pricing Model, the Beta Coefficient Is

question 74

Multiple Choice

In the capital asset pricing model, the beta coefficient is a measure of ________ risk and an index of the degree of movement of an asset's return in response to a change in ________.

• A) diversifiable; the prime rate
• B) nondiversifiable; the Treasury bill rate
• C) diversifiable; the bond index rate
• D) nondiversifiable; the market return

---

Definitions:

Transactions

The act of conducting business, especially buying or selling goods, services, or assets.

Strengthens

To make or become stronger, more forceful, or more effective.

C$

Symbol representing the Canadian Dollar, the currency of Canada.

US$

The US dollar, symbolized as USD, is the official currency of the United States of America and used as a benchmark in the global economy.