The riskiness of a future cash flow is measured by ________ , and these are all components of the SML
A) the firm's standard deviation, correlation, and the market risk premium
B) beta, the market risk premium, and the firm's standard deviation
C) the market risk premium, beta, and correlation
D) beta, the market risk premium, and the risk-free rate
Answer: D
You might also like to view...
What value chain segments has Tesla chosen to enter and perform internally?
A. Tesla has chosen to integrate forward in the value chain by owning the distribution, sales, and servicing network. B. Tesla has chosen to integrate backward in the value chain by manufacturing their own parts and components. C. All of these choices are correct. D. Tesla has chosen to integrate forward in the value chain by building a network of supercharger stations.
The probability of an event is a value which
A. must be Positive B. must be less than 1 C. greater than 0 but less than 1 D. greater than or equal to 0 but less than 1 E. greater than or equal to 0 but less than or equal to 1