Which of the Following Factors Comprise the CAPM

question 7

Multiple Choice

Which of the following factors comprise the CAPM?
I. dividend yield
II. risk-free rate of return
III. the expected rate of return on the market
IV. risk premium for the firm

• A) I and III only
• B) II and IV only
• C) III and IV only
• D) II, III and IV only

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Definitions:

Competitive Occupations

Jobs or careers where individuals or organizations compete against others for resources, recognition, or achievement.

Subjective Conscious Experience

Individual perception and personal awareness of feelings, thoughts, and sensations, unique to each person.

Anxiety-Arousing

Describes stimuli or situations that elicit feelings of anxiety, fear, or stress.

Cognitive Component

The aspect of attitude that involves beliefs, thoughts, and knowledge about the subject.