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QUESTION 8 The market risk measure in the CAPM is: O Alpha O Beta O The standard deviation of HPRS O The correlation coefficient

QUESTION 8 The market risk measure in the CAPM is: O Alpha O Beta O The standard deviation of HPRS O The correlation coefficient

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The security market line (SML) describes the relationship between total risk v and expected return According to the CAPM, the higher the V the higher the QUESTION 8 The market risk measure in the CAPM is: O Alpha O Beta O The standard deviation of HPRS O The correlation coefficient QUESTION 9 In the CAPM, alpha is O An important determinant of a security's expected return O An indicator that the CAPM does not describe a security's expected return O The result of temporary mispricing O The measure of firm-specific risk
Transcribed Image Text:The security market line (SML) describes the relationship between total risk v and expected return According to the CAPM, the higher the V the higher the QUESTION 8 The market risk measure in the CAPM is: O Alpha O Beta O The standard deviation of HPRS O The correlation coefficient QUESTION 9 In the CAPM, alpha is O An important determinant of a security's expected return O An indicator that the CAPM does not describe a security's expected return O The result of temporary mispricing O The measure of firm-specific risk
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