An asset pricing theory based on beta, a measure of risk is ________.
A) The best known asset pricing equation
B) Starts with the modern portfolio theory
C) CAPM
D) All of the above

Question

Quizplus · Accepted Answer

The Capital Asset Pricing Model (CAPM) is an asset pricing theory based on beta, which measures risk. It is indeed one of the best-known asset pricing equations and originates from the modern portfolio theory, making all of the provided options correct.

An Asset Pricing Theory Based on Beta, a Measure of Risk