From this model we can get a measure of how the return on an asset systematically varies with the variations in the market, and consequently we can get a measure of systematic risk.Identify this model.
A)Discounted Cash Flow Model
B)Capital Asset Pricing Model
C)Modigliani-Miller Model
D)Absolute Return Model
E)Value at Risk Model

Question

Quizplus · Accepted Answer

The Capital Asset Pricing Model (CAPM) is designed to measure the systematic risk of a security or a portfolio in comparison to the market as a whole, by relating the expected return on an investment to its risk.

From This Model We Can Get a Measure of How