Multiple Choice
Components of the capital asset pricing model include
A) a stock's market price
B) the standard deviation of a stock's return
C) the rate on a risk-free security
D) the investor's need for income versus capital gains
Correct Answer:

Verified
Correct Answer:
Verified
Q11: The standard deviation measures an asset's expected
Q12: The larger an investment's standard deviation, the
Q13: For a security to help diversify a
Q14: The capital asset pricing model specifies the
Q15: Systematic risk<br>1) is the tendency for a
Q17: Unsystematic risk is the tendency for stock
Q18: A diversified portfolio reduces<br>A) unsystematic risk<br>B) systematic
Q19: You bought a stock with a beta
Q20: An investor may reduce risk by<br>1) selecting
Q21: An investor may reduce risk by selecting<br>A)