One Way to Express the Trade-Off Between Risk and Return

question 35

Multiple Choice

One way to express the trade-off between risk and return for an individual security is through:

• A)the security market line.
• B)the beta coefficient.
• C)the correlation coefficient.
• D)arbitrage pricing theory.

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Definitions:

Sympathetic

Feeling, showing, or expressing sympathy, understanding, or compassion towards others.

Somatic

Relating to or affecting the body, distinct from the mind.

Central

Pertaining to the main or most important part of something; often used in psychology to describe core processes or systems.

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for conserving energy and returning the body to a restful state after stress or activity.