The Capital Market Line (CML) Uses ____ as a Risk

question 146

Multiple Choice

The capital market line (CML) uses ____ as a risk measurement, whereas the capital asset pricing model (CAPM) uses ____.

• A) beta; total risk
• B) standard deviation; total risk
• C) standard deviation; systematic risk
• D) unsystematic risk; total risk
• E) systematic risk; beta

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Definitions:

Frontal

Pertaining to the front part of the brain, involved in decision making, problem solving, and controlling behavior.

Autonomic Nervous System

Part of the peripheral nervous system that controls involuntary body functions, such as heart rate, digestion, and respiratory rate.

Sympathetic

Relates to the part of the autonomic nervous system that prepares the body for intense physical activity and is often referred to as the fight-or-flight response.

Parasympathetic

Part of the autonomic nervous system responsible for relaxing the body and conserving energy.