The Intercept Point of the Security Market Line Is the Rate

question 94

Multiple Choice

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

• A) the risk-free rate.
• B) the market rate.
• C) a return of zero.
• D) a return of 1.0 percent.
• E) the market risk premium.

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Definitions:

Responses

Reactions or behaviors produced by an organism in response to a specific stimulus or situation.

Continuous Reinforcement

is a method of learning where a desired behavior is reinforced each time it occurs, leading to faster acquisition of the behavior.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, through which an association is made between a behavior and a consequence for that behavior.

Correct Response

The accurate or appropriate reply or action in answer to a question, statement, or situation.