The Capital Asset Pricing Theory Is Based on the Premise

question 26

Multiple Choice

The capital asset pricing theory is based on the premise that:

• A) only unsystematic variability in cash flows is relevant.
• B) only systematic variability in cash flows is relevant.
• C) both systematic and unsystematic variability in cash flows are relevant.
• D) neither systematic nor unsystematic variability in cash flows is relevant.

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