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In the Results of the Earliest Estimations of the Security

question 39

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 nonsystematic risk and ________ to its beta.


Definitions:

Pluralism

The coexistence of multiple groups, beliefs, or cultures within a single society, recognizing and valuing diversity.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.

Honorary White

A term referring to individuals of a minority group who are granted some privileges associated with whiteness due to their social, economic, or political status.

Intermediary Group

A mediating or middle entity that facilitates communication, interaction, or transaction between two separate groups or individuals.

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