This topic contains a solution. Click here to go to the answer

Author Question: Beta in the CAPM is ____. a. one measure of the systematic risk of a stock b. estimated as the ... (Read 116 times)

j.rubin

  • Hero Member
  • *****
  • Posts: 557
Beta in the CAPM is ____.
 a. one measure of the systematic risk of a stock
  b. estimated as the slope of a regression line between an individual security's returns and returns for the market index.
  c. useful in estimating the firm's cost of debt capital
  d. a and b only
  e. a, b, and c

Question 2

Adverse selection in insurance requires that
 a. all people face the same risk
  b. potential customers facing more risk are more interested in purchasing insurance
  c. people are not risk averse
  d. insurers can tell higher risk people from lower risk people



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

apple

  • Sr. Member
  • ****
  • Posts: 352
Answer to Question 1

d

Answer to Question 2

b




j.rubin

  • Member
  • Posts: 557
Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review


ryhom

  • Member
  • Posts: 366
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

For a complete list of videos, visit our video library