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Author Question: Beta in the CAPM is ____. a. one measure of the systematic risk of a stock b. estimated as the ... (Read 120 times)

j.rubin

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on: Jul 1, 2018
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


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apple

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Reply #1 on: Jul 1, 2018
Answer to Question 1

d

Answer to Question 2

b


j.rubin

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

nothere

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

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