Which of the following factors comprise the CAPM?

I. dividend yield
II. risk-free rate of return
III. the expected rate of return on the market
IV. risk premium for the firm

A) I and III only
B) II and IV only
C) III and IV only
D) II, III and IV only


Answer: D

Business

You might also like to view...

If you were to design a structure that would have the greatest potential to interact with the environment through surface area contact, would you design a structure similar to Figure A, B, or C? Explain your answer. 

What will be an ideal response?

Business

"Can I send you a new copy of the tour schedule?" is an example of a(n) ____ question.

A. open-ended B. closed C. follow-up D. feedback

Business

One of the following is not a type of risks that executives must address. Which is it?

A. business risk taking B. personal risk taking C. product-market risk taking D. financial risk taking

Business

What amortization payment would you need to make every month, at 12% interest compounded monthly, to pay off a loan of $8,500 in 3 years? (Use Table 12-2 from your text)

A) $3,538.97 B) $282.32 C) $197.32 D) $279.53

Business