1 thought on “CAPM Practice Question

  1. gstramb Post author

    Correct answer is C.
    The chart is likely to be a tornado diagram.
    Tornado diagrams are useful for comparing relative importance and impact of variables that have a high degree of uncertainty to those that are more stable. The variables are positioned vertically, and the bars extend horizontally.
    The longest bar is at the top of the chart, and the shortest bar is at the bottom. This resembles the shape of a tornado; hence the name.

Leave a Reply