Suppose the CAPM Is True

question 214

True/False

Suppose the CAPM is true.Asset X has a standard deviation of 20%,and Asset Y has a standard deviation of 30%.Asset Y's expected return must exceed that of Asset X.

---

Definitions:

Euphoria

An emotion of strong enthusiasm and joy.

Heart Race

A rapid heartbeat, often perceived as a fluttering or pounding in the chest, which can be caused by excitement, stress, or physical activity.

Schachter's Two-factor Theory

A psychological theory that emotions are determined by physiological arousal and cognitive labeling of the cause of that arousal.

Different Emotions

A range of complex feelings or states that arise through circumstances, moods, or relationships with others.