NACVA CVA Exam - Topic 6 Question 67 Discussion

Actual exam question for NACVA's CVA exam

Question #: 67
Topic #: 6

The capital asset pricing model is part of a larger body of economic theory known as capital market theory. Capital market theory also includes:

ASecurity analysis

BPortfolio management theory

CA normative theory

DSystematic theory

Show Suggested Answer

Suggested Answer: C

by Jess at Apr 01, 2023, 06:24 AM

Limited Time Offer

25%

Off

Get Premium CVA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Myra

6 months ago

Not sure if I buy into all this capital market theory stuff.

upvoted 0 times

...

Johnna

6 months ago

Security analysis is also included, right?

upvoted 0 times

...

Sommer

6 months ago

Wait, I thought systematic theory was separate?

upvoted 0 times

...

Franchesca

6 months ago

Totally agree, it's all about managing risk!

upvoted 0 times

...

Nelida

6 months ago

Portfolio management theory is definitely part of it.

upvoted 0 times

...

Precious

7 months ago

I practiced a question similar to this, and I think the answer was portfolio management theory, but I’m a bit uncertain about the other options.

upvoted 0 times

...

Lynelle

7 months ago

I feel like security analysis is related, but I might be mixing it up with something else we covered in class.

upvoted 0 times

...

Yun

7 months ago

I remember studying that capital market theory is broader than just CAPM, but I can't recall if systematic theory was mentioned specifically.

upvoted 0 times

...

Maurine

7 months ago

I think capital market theory definitely includes portfolio management theory, but I'm not completely sure if that's the only part.

upvoted 0 times

...

Serina

7 months ago

Hmm, I'm a bit unsure about this one. I know Scrum has some specific practices, but I'll need to think through which ones are most relevant to self-management.

upvoted 0 times

...

Nicholle

7 months ago

I remember that we need to specify the correct interfaces and ports in the packet capture, but I'm a bit unsure about the parameters for filtering.

upvoted 0 times

...

Ernie

7 months ago

Okay, let's see. I'm pretty sure the answer has to do with setting up the inventory record properly, but I'm not sure which option is best.

upvoted 0 times

...

Stephane

11 months ago

Wait, isn't capital market theory just a fancy way of saying 'how to make money, but ethically'?

upvoted 0 times

...

Justa

11 months ago

I guess capital market theory is like the stock market - always keeping us on our toes!

upvoted 0 times

Amie

10 months ago

D) Systematic theory

upvoted 0 times

...

Desire

10 months ago

C) A normative theory

upvoted 0 times

...

Eleonore

10 months ago

B) Portfolio management theory

upvoted 0 times

...

Margurite

10 months ago

A) Security analysis

upvoted 0 times

...

Carli

12 months ago

B) Portfolio management theory, no doubt. It's the yin to security analysis' yang.

upvoted 0 times

Derrick

10 months ago

C) A normative theory is important for setting standards and guidelines in the market.

upvoted 0 times

...

Rolf

10 months ago

B) That's true, they work hand in hand in understanding the market.

upvoted 0 times

...

France

10 months ago

A) Security analysis is also a crucial part of capital market theory.

upvoted 0 times

...

Iesha

1 year ago

Hmm, I think D) Systematic theory is the right answer. It's all about the big picture, you know?

upvoted 0 times

Josefa

10 months ago

C) A normative theory is also essential for guiding decision-making in the capital market.

upvoted 0 times

...

Alaine

10 months ago

Security analysis, A) is crucial for understanding the individual securities within the market.

upvoted 0 times

...

Dona

10 months ago

I think B) Portfolio management theory is also an important part of capital market theory.

upvoted 0 times

...

Marla

11 months ago

I agree, D) Systematic theory is definitely a key component of capital market theory.

upvoted 0 times

...

Margart

11 months ago

I think all of the options are interconnected and contribute to the overall understanding of capital market theory.

upvoted 0 times

...

Jackie

12 months ago

I see your point, but I believe A) Security analysis plays a crucial role as well.

upvoted 0 times

...

Tamesha

12 months ago

I think B) Portfolio management theory is also an important part of capital market theory.

upvoted 0 times

...

Luisa

12 months ago

I agree, D) Systematic theory is definitely a key component of capital market theory.

upvoted 0 times

...

Otis

1 year ago

I'm pretty sure the answer is C) A normative theory. Capital market theory is all about what should be, not what is.

upvoted 0 times

Nickolas

12 months ago

I believe it's A) Security analysis.

upvoted 0 times

...

Adrianna

12 months ago

I think it's B) Portfolio management theory.

upvoted 0 times

...

Eleonora

1 year ago

I'm not sure, but I think it could also be A) Security analysis.

upvoted 0 times

...

Jesse

1 year ago

I agree with Dierdre, portfolio management theory is definitely part of capital market theory.

upvoted 0 times

...

Hershel

1 year ago

The correct answer is B) Portfolio management theory. Capital market theory encompasses both security analysis and portfolio management theory.

upvoted 0 times

...

Dierdre

1 year ago

I think the answer is B) Portfolio management theory.

upvoted 0 times

...