CHAPTER 21 QUIZ 21 TO 25
21. The capital asset pricing model (CAPM) takes off where the efficient frontier concludes with the introduction of a new investment outlet,
the risk free asset (Rf).
22. Points along the Capital Market Line represent a combination of a risk-free asset and M (the market portfolio) with the possibility of
borrowing beyond point M.
23. In using the Capital Market Line, the higher the portfolio standard deviation (sp), the lower the anticipated return (Kp).
24. The beta coefficient indicates how volatile a stock is relative to the market.
25. Systematic risk measures risk that is related to the market.