Question
Which of the following describes the relationship
between systematic risk and return?Solution
The CAPM model helps to determine the required rate of return of equity investment or cost of equity by taking into account the systemic risk of the investment represented by the beta of that investment.
Statements:
P ≤ M < X > K; X < S > T; T < U < V
Conclusions:
I). Â P < S
II).  P ≥ S
...Statements: E * M, M # N, N $ K
Conclusions: a) E * NÂ Â Â Â Â b) M $ K
Statements:
A > L ≥ W = J ≤ T; Y ≥ Z > L ≥ P
Conclusions:
I). P ≤ A
II). T > Y
...Statements: Y ≤ A = F; H > T; H < V < F; Y ≤ W < R
Conclusions:
I. Y < V
II. T < A
III. W > H
Which of the following symbols should be placed in the blank spaces respectively (in the same order from left to right) in order to complete the given e...
Statements: J > M < C ≤ S < Q = K > N
ConclusionÂ
I. J ≥ S
II. N > M
Statement:G≥ K, K ≤ S, S = M, M < N
Conclusion: I. N > K II. G < S
Statements:
A > B ≥ D > C ≤ V < L; C > Z > Q
Conclusions:
I)Â B > Q
II) L < Z
...Statements: T < U = V = W < X < Y; Z = Y < R < S < O
Conclusions:
I. Z > U
II. T < O
Statements: P > Q ≤ R; Q ≥ O > S; T < S ≤ U
Conclusions:
I. T < R
II. U ≤ Q
III. P > U
...