Which of the following is the best representation of the CAPM model? Group of answer choices kp = RFR - (km - RFR) x βp kp = RFR + (km - RFR) x βp kp = RFR + (km + RFR) x βp kp = RFR - (km + RFR) x βp
According to the CAPM,
kp = RFR + [(km - RFR) x βp]
RFR = Risk-free Rate
βp = Beta
km = Market Return
Hence, 2nd option is correct.
Which of the following is the best representation of the CAPM model? Group of answer choices...
Which of the following is the best Lewis structure for
BF3?
Group of answer choices
D
C
B
A
(a)
Which of the following is not true? Group of answer choices The dividend growth model seeks to estimate the current market value of a stock by calculating the total future value of the future dividend payments. The dividend growth model cannot be used to estimate the current market value of stocks of firms that don’t issue any dividends. There are ways other than the dividend growth model to conduct stock valuation, including multiplying a benchmark Price-to-Earnings ratio with earnings per...
Which of the following best describes a test plan? Group of answer choices A progress report made when testing software A method for verifying that software meets customer needs A plan on strategies for inducing and detecting bugs in software Documentation of test tools which are purchased or developed in-house
What is "E(Rm) - Rf" called in the CAPM equation? Group of answer choices a. The Capital Market Line (CML). b. The stock's risk premium. c. The market's risk premium. d. The Characteristic Line.
Which of the following best illustrates the concept of diminishing returns? Group of answer choices As more people are employed, total production of goods will diminish. As additional people are employed, the amount of additional goods produced will diminish. As total production of goods increases, a diminishing amount of labor is required. Each additional unit of output produced requires less additional labor.
Which of the following BEST describes the levels of biodiversity? Group of answer choices a. Habitat loss only affects community and ecosystem diversity b. Populations can have lots of genetic diversity, or be totally fixed at specific loci. c. Exploitation and reduction in population size make populations less susceptible to genetic drift d. Nutrient-poor communities have high diversity
In the CAPM, Group of answer choices A. larger the value of β for a stock, larger is the unsystematic risk involved in investing in the stock. B. larger the value of β for a stock, smaller is the unsystematic risk involved in investing in the stock. C. larger the value of β for a stock, larger is the systematic risk involved in investing in the stock. D larger the value of β for a stock, smaller is the systematic...
2. Which of the following best
defines the real exchange rate? Group of answer choices the price
of foreign bonds in terms of domestic bonds the price of foreign
currency in terms of domestic currency the price of domestic goods
in terms of foreign goods the price of domestic currency in terms
of foreign currency
Question 2 Which of the following best defines the real exchange rate? O the price of foreign bonds in terms of domestic bonds O the...
Which of the following statements is CORRECT? Group of answer choices -The CAPM has been thoroughly tested, and the theory has been confirmed beyond any reasonable doubt. -A graph of the SML as applied to individual stocks would show required rates of return on the vertical axis and standard deviations of returns on the horizontal axis. -If investors become more risk averse, then (1) the slope of the SML would increase and (2) the required rate of return on low-beta...
Which of the following is predicted by the drive-arousal model of performance? Group of answer choices Performance will only be influenced by an audience who can see the performance, but not by the mere presence of others who cannot see the performance. Performance will not be influenced by an audience who can see the performance, but will be influenced by the mere presence of others who cannot see the performance. Performance will be influenced by both an audience and also...