Multiple Choice
To measure risk, the capital asset pricing model uses
A) beta
B) an asset's standard deviation
C) the volatility of an asset's cash flows
D) the term during which the asset is held
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q29: The larger the standard deviation of an
Q30: What is the required return using the
Q31: The risk premium in the capital asset
Q32: A beta coefficient is an index of
Q33: Beta coefficients and standard deviations may be
Q34: An aggressive investor will tend to prefer
Q35: The numerical value of a stock's beta
Q36: Beta coefficients are computed with estimated data
Q37: The risk associated with dispersion around an
Q38: A beta coefficient for a risky stock