The capital asset pricing model can be applied to:
A) stocks.
B) bonds.
C) portfolios.
D) international stocks.
E) all assets.

Question

Quizplus · Accepted Answer

The Capital Asset Pricing Model (CAPM) is a financial model that is used to determine the expected return on an investment, taking into account its risk relative to the market. It can be applied to any asset that has a market risk premium, including stocks (both domestic and international), bonds, and portfolios of various assets. Therefore, it is applicable to all assets mentioned in the options.

The Capital Asset Pricing Model Can Be Applied To