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CAPM- multiple choice

The capital assets pricing model (CAPM) tells us that in an efficient and fair capital market, the expected return on an asset only depends on its:
a. Total risk.
b. Systematic risk.
c. Unsystematic risk.
d. No risk.

18. The CAPM shows that the expected return for a particular asset depends on the following factors except:
a. Market risk premium.
b. The pure time value of money.
c. The amount of unsystematic risk.
d. The amount of systematic risk.

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CAPM multiple choice
The capital assets pricing model (CAPM) tells us that in an efficient and fair capital market, the expected return on an asset only depends on its:
a. Total risk.
b. Systematic risk. ...

Solution Summary

Answers and explanations to 2 CAPM multiple choice questions

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