Suppose You Observe the Following Situation Assume These Securities Are Correctly Priced

question 83

Multiple Choice

Suppose you observe the following situation: $\begin{array}{ccc}&& \text { Expected } \\\text { Security } & \text { Beta } & \text { Retumn } \\\mathrm{A} & 1.16 & .1137 \\\mathrm{~B} & .92 & .0984\end{array}$
Assume these securities are correctly priced. Based on the CAPM, what is the return on the market?

• A) 9.99 percent
• B) 11.42 percent
• C) 10.35 percent
• D) 9.78 percent
• E) 11.01 percent

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Definitions:

Humanistic Psychologists

Psychologists who focus on an individual's free will, personal growth, and the concept of self-actualization.

Psychiatrists

Medical doctors who specialize in diagnosing, treating, and preventing mental health disorders, often using both medication and therapy.

Clinical Psychologists

Professionals specialized in diagnosing and treating mental health disorders, emotional disturbances, and dysfunctional behavior through various therapies.

Psychodynamic Perspective

An approach in psychology that emphasizes systematic study of the psychological forces underlying human behavior, feelings, and emotions and how they might relate to early experience.