A Security That Has a Rate of Return That Exceeds

question 177

Multiple Choice

A security that has a rate of return that exceeds the Treasury bill rate but is less than the market rate of return must:

• A) Be a risk-free asset.
• B) Have a beta that is greater than 1.0 but less than 2.0.
• C) Be a risk-free asset with a beta less than.99.
• D) Be a risky asset with a standard deviation less than 1.0.
• E) Be a risky asset with a beta less than 1.0.

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Definitions:

Proof Statements

Statements or evidences used in sales and marketing to substantiate claims about the benefits and effectiveness of a product or service.

Product Claims

Statements made by a company about the benefits, features, or performance of their product, which can influence consumer perceptions and decisions.

Survey Results

Survey results are the data and insights gathered from responses to questions posed in a survey.

Indirect Suggestion

A statement by the salesperson recommending that the prospect undertake some action while making it seem that the idea to do so is the prospect’s.