Question

In the context of the capital asset pricing model (capm) the relevant measure of risk is

Answer 1

Answer:

According to the Capital Asset Pricing Model (CAPM), which one of the following statements is false? A. The expected rate of return on a security increases in direct proportion to a decrease in the risk-free rate. ... The expected rate of return on a security increases as its beta increases.

Answer 2

Answer:

Explanation:

y: Moderate Rationale: Both the Capital Market Line and the Security Market Line depict risk/return relationships. However, the risk measure for the CML is standard deviationand the risk measure for the SML is beta (thus C is not true; the other statements are true).