Question
According to the capital asset pricing model, the appropriate measure for risk is: a) the standard deviation of a firm's cash flows. b) alpha. c)
According to the capital asset pricing model, the appropriate measure for risk is:
a) the standard deviation of a firm's cash flows.
b) alpha.
c) the standard deviation of returns.
d) firm-specific risk. e) beta.
Step by Step Solution
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Step: 1
According to the Capital Asset Pricing Model CAPM the appropriate measure for risk is ...
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Step: 2
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Corporate Finance A Focused Approach
Authors: Michael C. Ehrhardt, Eugene F. Brigham
6th edition
1305637100, 978-1305637108
