Assume That the CAPM Holds

question 75

Multiple Choice

Assume that the CAPM holds.If a security has a beta of 1,its expected return is:

• A) the risk-free rate
• B) 1 percent
• C) the return on the market portfolio
• D) cannot be determined with the above information

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Definitions:

Cerebellum

A portion of the brain that plays an important role in motor control, and can also be involved in some cognitive functions such as attention and language.

Meninges

Protective membranes that cover the brain and spinal cord, consisting of three layers: the dura mater, arachnoid mater, and pia mater.

Cerebrospinal Fluid

A transparent, colorless liquid located in the brain and spinal cord, which offers padding while ensuring a constant environment.

Dermatome

An area of skin that is mainly supplied by a single spinal nerve.