Which of the following is an uninsurable risk?
A) theft
B) homicide
C) tornados
D) wildfires
E) wear and tear
Answer: E
Explanation: E) Personal risks, market risks, and political risks are uninsurable risks. Other uninsurable risks are wars, recessions, strikes, and gradual rusting or wear and tear.
Business
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The graph of the Capital Asset Pricing Model (CAPM) that relates the beta of a stock to its required return is called the
A) characteristic line. B) risk/return profile. C) line of least resistance. D) capital market line. E) security market line.
Business
What is the prediction of the CAPM with respect to optimal portfolio choice?
What will be an ideal response?
Business