Question
According to the capital-asset pricing model (CAPM), a
security's required return is equal to the risk-free rate plus a premium. This premium is _____Solution
Answer: D The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between the expected return and risk of investing in a security. It shows that the expected return on a security is equal to the risk-free return plus a risk premium, which is based on the beta of that security which is a measure of the systematic risk of that security . The CAPM formula is: ra = rrf + Ba (rm-rrf) where: rrf = the rate of return for a risk-free security rm = the broad market 's expected rate of return Ba = beta of the asset / Systematic risk or volatility of the stock
In each of the following questions a statement has been given with highlighted idioms. You are required to choose the meaning of the idioms from the op...
To put down in black and white
Show a clean pairs of heels
Select the most appropriate meaning of the highlighted idiom.
It was a Catch 22 situation for the manager.
Between A Rock And A Hard Place
Choose the option which best expresses the meaning of the idiom/phrase in bold in the sentence.
Despite several setbacks, the young entrepreneur de...In each of the following questions, an idiomatic expression/a proverb has been underlined – followed by four alternatives. Choose the one which best ...
Select the most appropriate meaning of the underlined idiom in the given sentence.
This problem is a hard nut to crack,it will take longer than t...
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- Select the most appropriate option to substitute the bold segment in the given sentence.
I was feeling nervous before the job interview, so my frie...
