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

9 months ago

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

upvoted 0 times

...

Johnna

9 months ago

Security analysis is also included, right?

upvoted 0 times

...

Sommer

9 months ago

Wait, I thought systematic theory was separate?

upvoted 0 times

...

Franchesca

9 months ago

Totally agree, it's all about managing risk!

upvoted 0 times

...

Nelida

9 months ago

Portfolio management theory is definitely part of it.

upvoted 0 times

...

Precious

10 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

10 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

10 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

10 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

10 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

10 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

10 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

1 year ago

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

upvoted 0 times

...

Justa

1 year ago

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

upvoted 0 times

Amie

1 year ago

D) Systematic theory

upvoted 0 times

...

Desire

1 year ago

C) A normative theory

upvoted 0 times

...

Eleonore

1 year ago

B) Portfolio management theory

upvoted 0 times

...

Margurite

1 year ago

A) Security analysis

upvoted 0 times

...

Carli

1 year ago

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

upvoted 0 times

Derrick

1 year ago

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

upvoted 0 times

...

Rolf

1 year ago

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

upvoted 0 times

...

France

1 year 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

1 year ago

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

upvoted 0 times

...

Alaine

1 year ago

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

upvoted 0 times

...

Dona

1 year ago

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

upvoted 0 times

...

Marla

1 year ago

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

upvoted 0 times

...

Margart

1 year ago

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

upvoted 0 times

...

Jackie

1 year ago

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

upvoted 0 times

...

Tamesha

1 year ago

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

upvoted 0 times

...

Luisa

1 year 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

1 year ago

I believe it's A) Security analysis.

upvoted 0 times

...

Adrianna

1 year 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

...