Which one of the following is the theory that states that the value of a security is dependent upon the pure time value of money, the reward for bearing systematic risk, and the amount of systematic risk?
A)reward-to-risk theory
B)capital asset pricing model
C)risk premium proposal
D)market slope hypothesis
E)security market line proposition

Question

Quizplus · Accepted Answer

The Capital Asset Pricing Model (CAPM) is the theory that states that the value of a security is dependent upon the pure time value of money, the reward for bearing systematic risk, and the amount of systematic risk. The other answer choices are not accurate descriptions of this theory.

Which One of the Following Is the Theory That States