According to the CAPM how is the risk premium on an individual security calculated?
What will be an ideal response?
Answer: The CAPM implies that the expected return of any security equals the risk-free rate plus the beta of the security multiplied by the market risk premium. The beta of the security is the covariance of its return with the return on the market portfolio divided by the variance of the market portfolio return. Hence, the risk premium on an individual security is a function of its covariance with the market portfolio.
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The inability to use content validation in small sample settings makes it generally less applicable than criterion-related validation.
Answer the following statement true (T) or false (F)
A ________ identifies the products or services of a company and differentiates them from those of competitors.
A. copyright B. product line C. mission D. brand
Hardware and software acquisition costs account for about ________ percent of TCO
A) 20 B) 40 C) 50 D) 75 E) 90
Stockholders' equity is also sometimes called ____________________ value or net worth.
Fill in the blank(s) with the appropriate word(s).