Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 04, 2024

Why is beta important in the CAPM systematic risk? a. It is needed in order to measure the total risk of an asset. b. The

Why is beta important in the CAPM systematic risk?

a. It is needed in order to measure the total risk of an asset.

b. The risk premium depends only on this type of risk.

c. The risk premium depends on both systematic and unsystematic risk.

d. The market does not provide a reward for this type of risk.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Theoretical Foundations For Quantitative Finance

Authors: Luca Spadafora, Gennady P Berman

1st Edition

9813202475, 978-9813202474

More Books

Students also viewed these Finance questions

Question

★★★★★

The utility that Ann receives by consuming food F and clothing C is given by U(F, C) = FC + F. The marginal utilities of food and clothing are MUF = C + 1 and MUC = F. Food costs $1 a unit, and...

Answered: 1 week ago

Question

★★★★★

Car discounts. A researcher, interested in studying gender differences in negotiations, collects data on the prices that men and women pay for new cars. Here is a histogram of the discounts (the...

Answered: 1 week ago

Question

★★★★★

11.45 The table gives data for a 3 x 3 factorial experiment, with two replications per treatment: a. Perform an analysis of variance for the data, and present the results in an analysis of variance...

Answered: 1 week ago

Question

★★★★★

Youth Singers (YS) is a not- for- profit organization that was formed in 20X1 by Nancy, a retired professional singer. Members of the choir range in age from 8 to 20. The choir has won a number of...

Answered: 1 week ago

Question

★★★★★

Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Claimjumper Makeover Total 53,000...

Answered: 1 week ago

Question

★★★★★

Problem 7-107 [LO 4] Elmyra currently manufactures a subcomponent that is used in its main product. A supplier has offered to supply all the subcomponents needed at a price of $22. Elmyra currently...

Answered: 1 week ago

Question

★★★★★

The company controller has set the revenue target for 2023 at $10,193,100 (or 55,700 pairs). He believes an additional marketin cost of $449,000 for advertising in 2023, with all other costs...

Answered: 1 week ago

Question

★★★★★

North American culture places a great deal of emphasis on a woman's weight in its appraisal of whether she is considered physically attractive. Some other cultures have a clear preference for more...

Answered: 1 week ago

Question

★★★★★

describe how the words we use to discuss personality disorders,( eg., narcissistic, borderline, antisocial,) shape our perception of what is considered normal or abnormal. Provide an example within...

Answered: 1 week ago

Question

★★★★★

Jason has a cat phobia, and therefore feelsanxious whenever he hears the word cat.He also feels anxious when he hears the word feline,which is an example of ____ generalization. a. secondary b....

Answered: 1 week ago

Question

★★★★★

Please answer each MCQ and give a small explanation (1-2 senetnces): This theory argues that progress and change in science are attributable to the ideas of unique individuals? A) Naturalistic...

Answered: 1 week ago

Question

★★★★★

10-8 The mobile platform may not make desktop PCs obsolete, but corporations will have to change their business models to adjust to this shift. Do you agree? Why or why not?

Answered: 1 week ago

Question

★★★★★

10-12 Pick one e-commerce company on the Internetfor example, Ashford, Buy.com, Yahoo, or Priceline. Study the Web pages that describe the company and explain its purpose and structure. Use the Web...

Answered: 1 week ago

Question

★★★★★

4. What role does Orbitz for Business play in the companys business strategy? When it comes to mobile apps and gauging their impact on consumers and business, the online travel industry and its...

Answered: 1 week ago

Previous Question Next Question