The ________ of a Security Divided by the Beta of That

question 51

Multiple Choice

The ________ of a security divided by the beta of that security is equal to the slope of the security market line if the security is priced fairly.

• A) real return
• B) actual return
• C) nominal return
• D) risk premium
• E) expected return

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Definitions:

Withdraw

To remove something from consideration or usage, or to take money out of a bank account.

Invest Enough Money

The process of allocating adequate financial resources to opportunities, projects, or assets to achieve desired outcomes or returns.

Net Present Value Analysis

A method used in capital budgeting to evaluate the profitability of an investment or project by computing the present values of all cash flows related to it.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.