According to the Capital Asset Pricing Model (CAPM), Which of the Following

question 80

Multiple Choice

According to the capital asset pricing model (CAPM) , which of the following is NOT relevant to the required return for a firm's equity?

• A)The standard deviation of returns for the firm's equity.
• B)The risk-free rate.
• C)The market return on a diversified equity portfolio.
• D)The beta of the share.
• E)All of these are relevant.

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Definitions:

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Insurance coverage designed to provide compensation for physical injuries to the person insured, often covering medical expenses and lost wages.

Optional Coverage

Additional insurance coverage that a policyholder can choose to add to a basic insurance policy.

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In legal context, a concept referring to responsibility or liability for wrongdoing or negligence that results in harm.

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A healthcare plan for low-income people that is administered by state governments but funded by both state and federal funds.