The Capital Asset Pricing Model (CAPM) is used to determine the interest rate used by investors to discount cash flows expected to be received in the future from a common stock.True/False

2.A stock with an average beta has the same beta as the composite stock market. That beta is zero. True/False

3. The weight used to determine the amount a security contributes to the expected return of a portfolio of securities is the percentage of the security s value relative to the total value of the portfolio.True/False

4. Standard Deviation

		a.Is a means to measure of the volatility of a security s returns, and therefore is a measurement of the riskiness of a security s returns
		b.The square root of the variance of a security s returns
		c.A measurement of how much a security s actual return is likely to deviate from the security s expected return
		d.a & b only
		e.a, b, c are all true