According to the CAPM, the Required Rate of Return on Stock

question 56

Multiple Choice

According to the CAPM, the required rate of return on stock is a positive function of all of the following, except:

• A) the risk-free rate of interest.
• B) the market rate of return.
• C) the stock's beta.
• D) the company's earnings.

---

Definitions:

Implied Warranty

An unstated guarantee that a product will meet a minimum level of quality and functionality.

Exclusion

The act of denying or restricting someone's access to a service, area, or group, often based on specific criteria.

Writing

The act or process of composing text or content through symbols, particularly in a language, as a form of communication or expression.