Multiple Choice
Which of the following is the correct CAPM equation used to determine the expected returns (r) of financial assets? (RM is the mean return of the market portfolio,rf is the risk-free rate,and is the beta computed against the return of the market portfolio.)
A) r = (RM - rf) - rf
B) r = rf - (RM - rf)
C) r = rf - (RM + rf)
D) r = rf + (RM - rf)
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Momentum is defined as:<br>A)the number of securities
Q2: How are mean-variance analysis and the CAPM
Q4: The beta of a stock or portfolio
Q5: Explain the concept of efficient frontier.
Q6: Which of the following can be considered
Q7: Which of the following equations is used
Q8: Which of the following is a disadvantage
Q9: The efficient frontier represents:<br>A)the means and correlation
Q10: Which of the following is a reason
Q11: Which of the following is an assumption