According to CAPM, the amount of reward an investor receives for bearing the risk of an individual security depends upon the: A. beta of the security and the market rate of return.
B. risk free rate, the market rate of return, and the standard deviation of the security.
C. market risk premium and the amount of systematic risk inherent in the security.
D. standard deviation of the security and the risk-free rate of return.
E. amount of total risk assumed and the market risk premium.

Options:

A.) Firm A needs to revamp its after-sales services.

B.) The sales of industrial goods are higher in Country X than in Country Y.

C.) The perception of quality can differ a cross countries

D.) Country X is a highly industrialized nation.

E.) Country Y has a lower average income level compared to Country X

C.) The perception of quality can differ a cross countries.

Explanation: The scenario illustrated above is most likely related to choice between users of different countries which may probably have different cultures, opinion, economic stability and various other reasons why they use the companies product.

This is because buyers in both countries are aware of the different versions of the product, However, buyers in one country tend to stick with the cheaper, older and bulkier version while buyers of the other nation preffered the newer and lightweight version. This is a clear issue of perception or ideas whereby some users think older versions of products even though may be less sleek in terms of appearance posses better quality than newer versions while some think otherwise that newer versions are always better in quality.