According to CAPM,the Expected Return on a Risky Asset Depends

question 17

Essay

According to CAPM,the expected return on a risky asset depends on three components.Describe each component and explain its role in determining expected return.

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Definitions:

Stakeholder Interests

The concerns, objectives, or needs of individuals or groups that have an investment, share, or interest in an organization or project.

Ethical Leaders

Individuals in positions of authority who demonstrate and promote high standards of ethical behavior and decision-making in their organizations.

Role Models

Individuals who are admired for their behaviors, qualities, or achievements and are considered examples to be emulated by others.

Coerce Subordinates

The act of compelling employees or lower-ranking individuals to act in a certain way through force or threats.