In the Capital Asset Pricing Model, an Increase in Inflationary

question 166

Multiple Choice

In the capital asset pricing model, an increase in inflationary expectations will be reflected by a(n)

• A) increase in the slope of the security market line.
• B) decrease in the slope of the security market line.
• C) parallel shift downward in the security market line.
• D) parallel shift upward in the security market line.

---

Definitions:

Incentive Plans

Programs designed by employers to motivate and reward employees for exceeding work performance goals.

Performance Standards

The established expectations, metrics, or benchmarks used to measure and assess an individual's or organization’s performance in specific areas.

Organizational Performance

The measurement of an organization's efficiency, effectiveness, and ability to meet its goals.

Lump-Sum Merit Raises

A one-time payment given to an employee as a reward for exceptional performance, instead of a regular salary increase.