Which of the Following Statements Is Most Correct

question 41

Multiple Choice

Which of the following statements is most correct?

• A) An increase in expected inflation could be expected to increase the required return on a riskless asset and on an average share by the same amount, other things held constant.
• B) A graph of the SML would show required rates of return on the vertical axis and standard deviations of returns on the horizontal axis.
• C) If two "normal" or "typical" shares were combined to form a 2-share portfolio, the portfolio's expected return would be a weighted average of the shares' expected returns, but the portfolio's standard deviation would probably be greater than the average of the shares' standard deviations.
• D) If investors became more averse to risk, then (1) the slope of the SML would increase and (2) the required rate of return on low-beta shares would increase by more than the required return on high-beta shares.
• E) The CAPM has been thoroughly tested, and the theory has been confirmed beyond any reasonable doubt.

Identify and analyze the disadvantages and challenges of the social communication model.

Distinguish between the encoding and decoding processes in communication.

Differentiate between communication mediums and channels.

Recognize the impact of emerging technologies and trends on business communication.

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Definitions:

Neurotransmitter

Chemical substances in the brain that transmit signals from one neuron to another, playing a major role in shaping everyday functions and mood.

Excitatory

Referring to substances or signals that increase the activity of the brain or other body systems, potentially leading to heightened arousal or action.

GABA

GABA (gamma-aminobutyric acid) is the main inhibitory neurotransmitter in the nervous system, playing a critical role in reducing neuronal excitability and regulating muscle tone.

Glutamate

An amino acid that acts as a neurotransmitter in the central nervous system.