Consider the Capital Asset Pricing Model

question 17

Multiple Choice

Consider the capital asset pricing model. The market degree of risk aversion, A, is 3. The risk premium is 2.25%. If the risk-free rate of return is 4%, the expected return on the market portfolio is ________.

• A) 6.75%
• B) 9%
• C) 10.75%
• D) 12%

---

Definitions:

Grades Slipping

The phenomenon of experiencing a decline in academic performance or grades over a period.

Consumer Credit Counseling Service

A non-profit organization that assists individuals in managing their debt and improving their credit status through financial education and personalized counseling.

Debt Repayment

The process of paying back borrowed money, typically involving installment payments that include both principal and interest.

Cancellation

The act of calling off or terminating a previously scheduled event, service, or agreement.