The Capital Asset Pricing Model Is Given By: ,Where

question 72

Multiple Choice

The capital asset pricing model is given by: ,where = expected return on the market, = risk-free market return,and = expected return on a stock or portfolio of interest.The explanatory variable in this model is:

• A) .
• B) .
• C) .

---

Definitions:

Childhood Friends

Long-term friendships that begin in childhood, often characterized by high levels of trust and shared experiences.

Work Friends

Refers to friendships that develop in the workplace between colleagues, which can affect job satisfaction and productivity.

Observational Learning

The acquisition of behavior based on the observation of another person’s behavior and of its consequences for that person. Also known as modeling.

Instrumental Conditioning

The process through which an individual learns a behavior in response to a stimulus to obtain a reward or avoid a punishment.