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Author Question: The Capital Asset Pricing Model (CAPM) includes which of the following in its base ... (Read 107 times)

moore.cailinf

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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

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Marked as best answer by moore.cailinf on Mar 29, 2022

Rcfelber

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moore.cailinf

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Reply 2 on: Mar 29, 2022
:D TYSM


ecabral0

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Reply 3 on: Yesterday
Wow, this really help

 

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