The First Rule of Good Behavior Is Always Be Yourself

question 46

Multiple Choice

The first rule of good behavior is always be yourself. Therefore, professional actors, who adopt the role of someone other than themselves, are behaving improperly.

• A) No fallacy.
• B) Begging the question.
• C) Tu quoque (you, too).
• D) Weak analogy.
• E) Accident.

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Definitions:

Systematic Risk

This is the exposure to uncertainty faced by all investments in a market or a sector, and is also recognized as market risk or non-diversifiable risk.

Unsystematic Risk

The risk of price change due to the unique circumstances of a specific security, as opposed to the market as a whole.

Market Risk Premium

The extra return expected by investors for taking on the risk of investing in the stock market over a risk-free rate.

Security Market Line

A line representing the relationship between the expected return of a market security and its risk, as measured by beta.