If the Rate of Return on the Stock Market Is

question 114

Multiple Choice

If the rate of return on the stock market is r_m and the rate of return on a risk-free asset is r_f, then:

• A) r_m - r_f measures the risk, all of it nondiversifiable, one has to accept in the stock market.
• B) r_m - r_f measures the risk, all of it diversifiable, one has to accept in the stock market.
• C) r_m + r_f measures the risk, all of it nondiversifiable, one has to accept in the stock market.
• D) r_m + r_f measures the risk, all of it diversifiable, one has to accept in the stock market.
• E) r_m + r_f measures the stock market's total risk.

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Definitions:

Pointer Expression

An expression that involves pointers, which are variables that store memory addresses.

Array Element

An individual value stored in an array, accessible by its index within the array.

Address

A numerical representation of a location in memory where data is stored or where a particular item can be found.

gPtr

A pointer variable, often used in programming to refer to the address of another variable.