The Reward-To-Risk Ratio Can Be Defined as The

question 259

Multiple Choice

The reward-to-risk ratio can be defined as the:

• A) Risk premium minus the risk-free rate of return.
• B) Market risk premium divided by the beta of a risky stock.
• C) Slope of the security market line.
• D) Beta of a risky stock.
• E) Market risk premium minus the risk free rate of return divided by a stock's beta.

---

Definitions:

Extraversion

A personality trait characterized by sociability, enthusiasm, and assertiveness, indicating an outward turning of emotional energy.

Self-concept

An idea of the self constructed from the beliefs one holds about oneself and the responses of others.

Congruent

In psychology, congruence refers to harmony and alignment between an individual's internal feelings, thoughts, and their external behaviors and situation.

Gut Feelings

Intuitive judgments or responses that are not derived from conscious reasoning but rather from an individual's instinct or intuition.