According to the CAPM

question 46

Multiple Choice

According to the CAPM:

• 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 related to the security's beta.

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Definitions:

Cognitive Therapy

A form of psychotherapy that addresses maladaptive thought patterns, with the goal of changing negative or harmful thought patterns to improve emotions and behaviors.

Maladaptive Thoughts

Negative thinking patterns that are counterproductive to solving problems or achieving personal goals.

Changing Beliefs

The process of modifying personal convictions or perceptions, often influenced by new information or experiences.

Group Therapy

A form of psychotherapy in which a small, carefully selected group of individuals meets regularly with a therapist to discuss and work through their problems.