In the Results of the Earliest Estimations of the Security

question 9

Multiple Choice

In the results of the earliest estimations of the security market line by Miller and Scholes (1972) , it was found that the average difference between a stock's return and the risk-free rate was ________ to its beta.

• A)positively related
• B)negatively related
• C)unrelated
• D)inversely related

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Definitions:

Elimination

The process of removing waste products and toxins from the body, achieved through mechanisms such as excretion and defecation.

Ingestion

The act of consuming food, beverages, or any other material by ingestions or absorption into the organism.

Absorption

Absorption is the process by which substances are taken into the body's interior, as in the uptake of nutrients by the digestive tract.

Absorption

The process by which substances are taken up into a more assimilable form, such as nutrients from food into the bloodstream.