Based on the Capital Asset Pricing Model,a Security That

question 34

Multiple Choice

Based on the capital asset pricing model,a security that:

• A)has a beta of 1.2 will plot as a point to the left of the overall market point
• B)is over-priced will plot as a point below the security market line
• C)has a beta of 1.0 should produce the risk-free rate of return
• D)has a beta of 0.9 will plot as a point below the security market line
• E)is under-priced will plot as a point to the left of the overall market point

---

Definitions:

Focus

The act of directing attention or effort towards a specific object, task, or activity.

Datasheet

A view or representation of database data or information in a table format, similar to a spreadsheet, allowing for data entry and editing.

Grid

A network of horizontal and vertical lines used to structure content, enhance design, or guide spatial alignment in layouts.

Fields

Specific categories or types of data stored in a database or organized in a form, usually represented as columns in a table.