According to the Capital Asset Pricing Model

question 45

Multiple Choice

According to the Capital Asset Pricing Model:

• A) the expected return on a security is negatively and non-linearly related to the security's beta.
• B) the expected return on a security is negatively and linearly related to the security's beta.
• C) the expected return on a security is positively and linearly related to the security's variance.
• D) the expected return on a security is positively and non-linearly related to the security's beta.
• E) the expected return on a security is positively and linearly related to the security's beta.

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Definitions:

State Statute

A written law enacted by a state legislature governing matters within the state's jurisdiction.

Lien

A legal claim or right against a property as security for a debt or charge that must be paid when the property is sold.

Surety

A surety is a person or entity that takes responsibility for another's performance of an obligation, such as the repayment of a loan, ensuring its fulfillment or providing compensation for failure.

Obligation

A legal or moral duty to perform or refrain from performing a specific act.