One Key Conclusion of the Capital Asset Pricing Model Is

question 65

True/False

One key conclusion of the Capital Asset Pricing Model is that the value of an asset should be measured by considering both the risk and the expected return of the asset, assuming that the asset is held in a well-diversified portfolio.The risk of the asset held in isolation is not relevant under the CAPM.

---

Definitions:

Mortality Salience

The awareness of one's own mortality, which can provoke various psychological responses and influence behaviors and attitudes toward life.

Empathetic

Having the ability to understand and share the feelings of another, showing empathy.

Sexist Remarks

Statements or comments that discriminate or demean individuals based on their gender, often reflecting societal stereotypes or biases.

Male Group Members

Individuals who identify as male within a collective or group.