A Drug That Should Not Be Used in the Latter

question 37

Multiple Choice

A drug that should not be used in the latter part of pregnancy because it may cause birth defects is:

• A) insulin.
• B) tetracycline.
• C) aspirin.
• D) cimetidine.

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Definitions:

Risk-Free Arbitrage

The practice of profiting from price differences in different markets or forms without risk.

Benchmark Portfolio

Portfolio against which a manager is to be evaluated.

Well-Diversified

Refers to an investment portfolio that contains a wide variety of assets to minimize risk.

SML

The Security Market Line, a graphical representation of the expected return of investments as a function of their risk, as described by the Capital Asset Pricing Model.