In the Present Value of an Annuity Table, the Factors

question 30

Multiple Choice

In the present value of an annuity table, the factors.

• A) increase as the interest rates increase.
• B) decrease as the periods increase.
• C) increase as the periods decrease.
• D) decrease as the interest rates increase.

Explain the practical applications and limitations of CAPM in financial decision-making.

Analyze how changes in risk aversion impact the security market line (SML) and stock prices.

Understand the concept of arbitrage and its role in ensuring market efficiency.

Explain the significance of alpha in evaluating a security's performance relative to CAPM predictions.