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

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