The Appropriate Measure for Risk According to the Capital Asset

question 51

Multiple Choice

The appropriate measure for risk according to the capital asset pricing model is

• A) the standard deviation of a firm's cash flows.
• B) alpha.
• C) beta.
• D) probability of correlation.

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Definitions:

Organizational Assets

Resources owned by a company that have value and can contribute to its financial health, including physical, intangible, and human resources.

High Skill

Refers to jobs or workers possessing advanced training, expertise, or education, typically resulting in better job performance and higher pay.

Non-Propertied People

Individuals or groups who do not own property or significant assets, often highlighting differences in social and economic status.

Social Mobility

The movement of individuals, families, or groups through a system of social hierarchy or stratification.