alleryStart learning →The capital asset pricing model is abbreviated as:
ACAPM
BCAPEX
CCOGS
DCAGR
Answer & Solution
Correct answer: A. CAPM
1. The model has a standard acronym.
2. The capital asset pricing model is a financial theory.
3. It is abbreviated CAPM.
4. Its equation links expected return to market risk.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 15 'Risk, Return, and Capital Market Theory'_
Keep practising Risk and Return
Browse all Risk and Return questions for US CMA Part 2, or explore more Finance topics.
Related questions
Complete the risk rulesMatch each risk termStack the risk termsSort the CAPM symbolsPull the rope to the right riskAn investor holding one stock rather than many is most exposed to which avoidable risk?Under CAPM, an asset with higher systematic risk should offer an expected return that is:Beta is relevant to investors because it measures the risk that is: