Which One of the Following Will Be Constant for All

question 21

Multiple Choice

Which one of the following will be constant for all securities if the market is efficient and securities are priced fairly?

• A) Variance
• B) Standard deviation
• C) Reward-to-risk ratio
• D) Beta
• E) Risk premium

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Definitions:

Inter-Rater

Relating to the level of agreement or consistency between different individuals (raters) assessing or scoring the same phenomenon.

Consistency

The degree to which a person's responses or behaviors are the same across different situations or over time.

Computed R-Values

Numerical measures that represent the strength and direction of a linear relationship between two variables.

Test Scores Reliability

The degree to which test scores are consistent and stable over time, indicating the reliability of the test.