The Best Fit Line of Pairwise Plot of the Returns

question 48

Multiple Choice

The best fit line of pairwise plot of the returns of the security against the market index returns is called :

• A) the SML.
• B) the CML.
• C) the characteristic line.
• D) the risk line.

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Definitions:

Acquiescent Response

A tendency to agree with or accept something passively, rather than expressing one's own opinion or dissent.

Elaboration-Likelihood Model

A theory suggesting two primary pathways (central and peripheral) that influence the ability of a message to persuade.

Central Route

In persuasion theory, a cognitive route of information processing that involves deliberate analysis of the attributes and content of the message.

Peripheral Route

An approach to persuasion that influences people by incidental cues, such as a speaker's attractiveness or non-central message features, differing in focus from the central route.