What is the name given to the equation that financial managers use to measure an investor's required rate of return?
A) The standard deviation
B) The capital asset pricing model
C) The coefficient of variation
D) The MIRR

Question

Quizplus · Accepted Answer

The equation that financial managers use to measure an investor's required rate of return is known as the Capital Asset Pricing Model (CAPM). It is used to calculate the expected return on an investment based on the risk-free rate, market risk premium, and the asset's beta (systematic risk).

What Is the Name Given to the Equation That Financial