The Intercept Point of the Security Market Line Is the Rate

question 158

Multiple Choice

The intercept point of the security market line is the rate of return which corresponds to:

• A) The risk-free rate of return.
• B) The market rate of return.
• C) A value of zero.
• D) A value of 1.0.
• E) The beta of the market.

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Definitions:

Confirmation Bias

The inclination to seek out, understand, prefer, and remember information that supports or validates one's existing beliefs or theories.

Information

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