Which of the Following Statements Is Most Correct

question 83

Multiple Choice

Which of the following statements is most correct?

• A) The slope of the security market line is beta.
• B) A stock with a negative beta must have a negative required rate of return.
• C) If a stock's beta doubles its required rate of return must double.
• D) If a stock has a beta equal to 1.0, its required rate of return will be unaffected by changes in the market risk premium.
• E) None of the above statements is correct.

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Definitions:

Observational Learning

The process of learning behaviors by watching and imitating others.

Sexual Arousal

A physiological and psychological state of being awakened to sexual desire, often characterized by increased blood flow to the genitals, elevated heart rate, and, in many cases, a desire for sexual activity.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without the need for prior learning.