According to the Capital Asset Pricing Model, in Equilibrium ________

question 16

Multiple Choice

According to the capital asset pricing model, in equilibrium ________.

• A) all securities' returns must lie below the capital market line
• B) all securities' returns must lie on the security market line
• C) the slope of the security market line must be less than the market risk premium
• D) any security with a beta of 1 must have an excess return of zero

Identify and apply the graphical method of solving linear programming problems, including the identification of feasible regions and corner points.

Comprehend the role of sensitivity analysis and the analytic postoptimality method in exploring the robustness of linear programming solutions.

Recognize valid mathematical forms of constraints in linear programming problems.

Understand the concept of the optimal solution, including its determination and its location within the feasible region.