Which of the Following Statements Does $\underline{not}$ Apply to the Market Model?
A)It Is a Simpler Approach

question 42

Multiple Choice

Which of the following statements does $\underline{not}$ apply to the market model?

• A)It is a simpler approach than the standard version of the capital asset pricing model.
• B)This approach is seldom used in accounting research.
• C)In this model, the risk-free return is dropped from the equation.
• D)Abnormal returns are captured in the error term of the model.

---

Definitions:

Command Button

An interactive interface element used in graphical user interfaces that allows users to execute specific commands or actions.

Group Header

In reporting or document formatting, a textual heading that precedes a group of related data or information, often used to categorize or segment the data.

Report Header

A section at the beginning of a report or document that typically contains the title, author, date, and other relevant information.

Detail

An individual feature, fact, or item that is part of a larger context, often contributing to a deeper understanding or complexity.