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Author Question: The Capital Asset Pricing Model (CAPM) includes which of the following in its base ... (Read 48 times)

moore.cailinf

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on: Mar 29, 2022

Question 1

OKAY stock has a beta of 0.8. The market as a whole is expected to decline by 12% thereby causing OKAY stock to
◦ decline by 9.6%.
◦ decline by 12.5%.
◦ increase by 9.6%.
◦ increase by 12%.

Question 2

The Capital Asset Pricing Model (CAPM) includes which of the following in its base assumptions?

I.Investors buying positive beta stocks should earn a minimum return equal to the risk-free rate.
II.Investors in the market should earn a return greater than the return on the overall market.
III.Investors should be rewarded for the amount of risk they assume.
IV.Investors should earn a return located above the Security Market Line.

◦ I and III only
◦ II and IV only
◦ I, II and III only
◦ I, III and IV only
Fundamentals of Investing ¦ Zutter, Smart ¦ 14th Edition
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Marked as best answer by moore.cailinf on Mar 29, 2022

Rcfelber

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Reply #1 on: Mar 29, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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moore.cailinf

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Reply 2 on: Mar 29, 2022
:D TYSM

parker125

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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