Which of the Following Statements Is FALSE

question 91

Multiple Choice

Which of the following statements is FALSE?

• A)The risk premium of a security is equal to the market risk premium (the amount by which the market's expected return exceeds the risk-free rate),divided by the amount of market risk present in the security's returns measured by its beta with the market.
• B)We refer to the beta of a security with the market portfolio simply as the security's beta.
• C)There is a linear relationship between a stock's beta and its expected return.
• D)A security with a negative beta has a negative correlation with the market,which means that this security tends to perform well when the rest of the market is doing poorly.

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Definitions:

Adrenaline

Also known as epinephrine, a hormone and neurotransmitter that increases heart rate, contracts blood vessels, dilates air passages, and participates in the fight-or-flight response of the sympathetic nervous system.

Nociception

The sensory nervous system's response to potentially harmful stimuli, signaling pain to the brain.

Nociception

The sensory nervous system's response to certain harmful or potentially harmful stimuli.

Dull Pressure

A physical sensation often described in medical contexts as a consistent, moderate intensity force or weight felt in a particular area of the body.