Finance 316 practice problems for final exam 1. True or False: According to the CAPM, a stock's expected return is positively related to its beta. 2. In practice, the market portfolio is often represented by: A. a portfolio of U.S. Treasury securities. B. a diversified stock market index. C. an investor's mutual fund portfolio. D. the historic record of stock market returns. 3. A stock's beta measures the: A. average return on the stock. B. variability in the stock's returns compared to
Words: 1098 - Pages: 5
