The Capital Asset Pricing Model Asserts That the Expected Return

question 89

Multiple Choice

The Capital Asset Pricing Model asserts that the expected return ________.

• A) is equal to the risk-free rate plus a risk premium for unsystematic risk
• B) is equal to the risk-free rate plus a risk premium for systematic risk
• C) is equal to the risk premium plus a risk-free rate for systematic risk
• D) is equal to the risk premium plus a risk-free rate for unsystematic risk

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Definitions:

Power Distance

A societal attribute determining the level to which people in a society anticipate and accept that power is allocated unevenly.

Communication Style

The manner in which an individual expresses or conveys information to others, which can vary based on culture, personality, and context.

Social Media

Platforms and technologies that enable users to create, share content, or participate in social networking, such as Facebook, Instagram, and Twitter.

Communication Technology

The use of tools and platforms to facilitate communication and information exchange across distances, including the internet, email, and telecommunications.