Q823
Method and model used to analyze relationship between rates of return and risk is classified as
A.
capital asset pricing model
AnswerB.
portfolio asset pricing model
C.
asset market pricing model
D.
portfolio pricing model
Answer: Option A
Solution
Answer: Option A
Solution:
Method and model used to analyze relationship between rates of return and risk is classified as capital asset pricing model. The Capital Asset Pricing Model (CAPM) is a model that describes the relationship between the expected return. The return on the investment is an unknown variable that has different values associated with different probabilities. and risk of investing in a security.