【正文】 AACSB: AnalyticBlooms: RememberDifficulty: BasicTopic: CAPM1.D.0.B.AACSB: AnalyticBlooms: RememberDifficulty: BasicTopic: CAPMunique risk.D.systematic risk.B.6.According to the Capital Asset Pricing Model (CAPM) a well diversified portfolio39。None of the optionsWith a diversified portfolio, the only risk remaining is market, beta, or systematic, risk. This is the only risk that influences return according to the CAPM.unique risk.D.beta risk.B.5.According to the Capital Asset Pricing Model (CAPM) a well diversified portfolio39。None of the optionsWith a diversified portfolio, the only risk remaining is market, or systematic, risk. This is the only risk that influences return according to the CAPM.unique risk.D.market risk.B.4.According to the Capital Asset Pricing Model (CAPM) a well diversified portfolio39。variance of returns.Once a portfolio is diversified, the only risk remaining is systematic risk, which is measured by beta.market risk.C.A.3.In the context of the Capital Asset Pricing Model (CAPM) the relevant risk isvariance of returns.Once a portfolio is diversified, the only risk remaining is systematic risk, which is measured by beta.systematic risk.C.A.2.In the context of the Capital Asset Pricing Model (CAPM) the relevant risk isvariance of returns.Once a portfolio is diversified, the only risk remaining is systematic risk, which is measured by beta.beta.C.A.1.In the context of the Capital Asset Pricing Model (CAPM) the relevant measure of risk isShort Answer Questions..C.A.78.Assume that a security is fairly priced and has an expected rate of return of . The market expected rate of return is and the riskfree rate is . The beta of the stock is%.D.%.B.%.%.C.A.76.A security has an expected rate of return of and a beta of . The market expected rate of return is and the riskfree rate is . The alpha of the stock is%.D.%.B...D..B...D..B.None of the options, as the stock is fairly pricedsell short stock X because it is underpriced.D.buy stock X because it is overpriced.B.None of the options, as the stock is fairly pricedsell short stock X because it is underpriced.D.buy stock X because it is overpriced.B.Cannot be determined from data provided.overpriced.C.A.70.Your opinion is that security C has an expected rate of return of . It has a beta of . The riskfree rate is and the market expected rate of return is . According to the Capital Asset Pricing Model, this security isfairly priced.D.underpriced.B.the money supply.the trading costs of security i.D.asset i39。the market39。below the security market line.on the capital market line.D.above the security market line.B.the efficient frontier without a riskfree asset.the capital allocation line.D.the security market line.B.II and IVI and IID.I and IVB.all portfolios and individual securities.efficient portfolios of securities only.D.portfolios of securities only.B.They pay no taxes or transactions costs.They are meanvariance optimizers.D.They are price takers who can39。A.63.One of the assumptions of the CAPM is that investors exhibit myopic behavior. What does this mean?II, III, and IVE.II and IIIC.A.s risk aversion coefficient.III) the riskfree rate of return.IV) the variance of the market portfolio...C.A.61.Assume that a security is fairly priced and has an expected rate of return of . The market expected rate of return is and the riskfree rate is . The beta of the stock is liquidity needs are not priced.D.the CAPM underlying assumptions are not violated.C.A.60.If investors do not know their investment horizons for certain,taxes are an important consideration.E.all investors are rational.C.A.59.The capital asset pricing model assumesall investors are rational and have the same holding period.E.all investors have the same holding period.C.A.58.The capital asset pricing model assumesall investors are price takers and have the same holding period.E.all investors have the same holding period.C.A.57.The capital asset pricing model assumesall investors are price takers and have the same holding period.E.all investors have the same holding period.C.A.56.The capital asset pricing model assumesadjusted by its degree of nonsystematic risk.E.greater than the marginal price of risk for the market portfolio.C.A.55.In equilibrium, the marginal price of risk for a risky security must bethe average degree of risk aversion of the investor population and the risk of the market portfolio as measured by its variance.E.the risk of the market portfolio as measured by its variance.C.A.54.The risk premium on the market portfolio will be proportional toeither above or below the security market line depending on its covariance with the market.E.below the security market line.C.A.53.An overpriced security will ploteither above or below the security market line depending on its covariance with the market.E.below the security market line.C.A.52.An underpriced security will plotboth liquid and illiquid stocks earn the same returns.D.liquid stocks earn higher returns than illiquid stocks.B.None of the options was suggested by Stein.both long and shortterm returns.D.longterm