The Expected Return/beta Relationship Is Used

question 32

Multiple Choice

The expected return/beta relationship is used

• A)by regulatory commissions in determining the costs of capital for regulated firms.
• B)in court rulings to determine discount rates to evaluate claims of lost future incomes.
• C)to advise clients as to the composition of their portfolios.
• D)All of the options are correct.

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Definitions:

Explicit Prejudice

Negative attitudes or beliefs that are consciously held and openly expressed towards a group or individual based on characteristics such as race, gender, or ethnicity.

Implicit Prejudice

An unconscious bias or attitude towards a person or group that influences behavior or perceptions without explicit awareness.

Scapegoating

The practice of singling out one person or group for unmerited blame or negative outcomes.

Implicit Prejudice

Unconscious biases or attitudes towards certain groups or individuals, which can affect decisions and actions without explicit awareness.