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Foundation of Finance

Quick practice

Question 1 of 5

Assertion (A):CAPM model is an important model to show the relationship between risks and returns.

Reasoning (R): CAPM model helps in providing a structure that determines the expected rate of return in future on an asset in which company has invested.

A

(A) is correct but (R) is not the correct explanation of (A).

B

(A) is correct but (R) is incorrect

C

(A) and (R) is correct and (R) is correct explanation of (A).

D

(A) is incorrect but (R) is correct.

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