In the 1972 Empirical Study by Black, Jensen, and Scholes

question 4

Multiple Choice

In the 1972 empirical study by Black, Jensen, and Scholes, they found that the estimated slope of the security market line was _______ what the CAPM would predict.

• A) flatter than
• B) equal to
• C) steeper than
• D) one-half as much as
• E) None of the options are correct.

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Definitions:

Recruiters

Professionals who seek out, interview, and screen applicants to fill job openings in organizations.

Outsourcing

The practice of hiring external parties to perform services or create goods that were traditionally performed in-house by the company's own employees and staff.

Direct Applicants

Individuals who apply for a job directly to the employer without intermediary agencies or recruiters.

Referrals

The act of recommending someone for a job, service, or other opportunities, often based on personal or professional connections.