Variables Are

question 93

Multiple Choice

Variables are:

• A) specific values (in whole numbers) that represent an individual's category membership.
• B) the value of physical, attitudinal, or behavioral characteristics for a given individual.
• C) hypothetical ideas that have been developed to describe and explain human behavior.
• D) observations of physical, attitudinal, or behavioral characteristics that can take on different values.

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Definitions:

Market Risk Premium

The additional return investors expect for holding a risky market portfolio instead of risk-free assets, reflecting the extra risk.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates the stock is more volatile than the market, while a beta less than 1 means it is less volatile.

Yield Curve

A graphical representation of the interest rates on debt for a range of maturities.

Market Risk Premium

The extra return over the risk-free rate that investors require to compensate them for the risk of holding a market portfolio.