Question: Which factor is not included in the CAPM equation? Alpha Beta Risk - free rate Expected value of the market

Which factor is not included in the CAPM equation?
Alpha
Beta
Risk-free rate
Expected value of the market

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

GA: Gold MIT Seals There is a retailer called "The Coop", which carries a wide variety of products with MIT's name and logo: shirts, caps, keychains, pens... you name it! Anything from golf balls and...

Q:

Use Table 4 to determine the cost of equity using the CAPM. Table 4 Number 1.4 3% Variable Beta Risk free rate Expected Dividend Market Risk Premium Growth rate Current Price $2 8% 6% $30 Select one:...

Q:

Please provide your thoughts about the below paragrahp regarding stocks and returns: Asset Pricing Model and how investors can use it to research stocks they are looking at investing in. In other...

Q:

Answer the missing value from letters A to F and show solution/working. The equation: Using the beta coefficient, (b) to measure nondiversifiable risk the CAPM equation is: Kj = Rf + (Km - Rf) b = Kj...

Q:

please read instruction party . thanks Permata Mutiara Holdings Berhad (Permata Group) is the holding company of the largest independent investment bank in Malaysia. Established for more than 30...

Q:

Permata Mutiara Holdings Berhad (Permata Group) is the holding company of the largest independent investment bank in Malaysia. Established for more than 30 years, Permata is a financial group in...

Q:

Permata Mutiara Holdings Berhad (Permata Group) is the holding company of the largest independent investment bank in Malaysia. Established for more than 30 years, Permata is a financial group in...

Q:

please answer my qurstion because i need very quick . tq and please read instruction . Permata Mutiara Holdings Berhad (Permata Group) is the holding company of the largest independent investment...

Q:

Help me do this assignment by guiding me step by step to complete everything, provide me guide question that I have to complete. So basically I need a step by step guide (as detailed as possible) to...

Q:

Assignment requirements for the course Derivatives and Risk Management: Individual Investment Trading Report: The goal of this individual assessment is to gain a better understanding of the equity...

Q:

Answer the missing value from letters A-F. Show workings/solution The equation: Using the beta coefficient, (b) to measure nondiversifiable risk the CAPM equation is: Kj = Rf + (Km - Rf) b = Kj =...

Q:

Today, pro forma financial statements have become essential tools for startup founders. It is an effective way to plan and predict, control, and analyze risks associated related to business funds. In...

Q:

1. A cruise of the Caribbean during February 10-17. $1,500 per person. 2. The Lion King Read-Along" storybook and CD. $4.66 A "Genie" brand garage door opener not installed. $198. Tickets to...

Q:

9. At December 31, 2025, Ashley plc has outstanding purchase commitments for purchase of 150,000 gallons, at 6.20 per gallon, of a raw material to be used in its manufacturing process. The company...

Q:

Pharoah Company reported the following amounts for 2022: Raw materials purchased $95,200 Beginning raw materials inventory 5,824 Ending raw materials inventory 5,040 Beginning finished goods...