Which of the Following Statements Is More Likely to Be

question 65

Multiple Choice

Which of the following statements is more likely to be correct concerning the statement, "Stock A has a higher expected return than Stock B"?

• A)Stock A has more unique risk.
• B)Stock B plots below the security market line.
• C)Stock B is a cyclical stock.
• D)Stock A has a higher Beta.

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Definitions:

Negotiability

Negotiability refers to the characteristic of a document or instrument that allows it to be transferred or assigned from one party to another, ensuring the transferee obtains certain legal rights.

Words of Negotiability

Phrases used in financial instruments that indicate the terms under which they can be transferred or assigned to another party.

Negotiation

A discussion aimed at reaching an agreement, where parties involved communicate back and forth to discuss and resolve differences.

Assignment

A transfer of rights or property from one party to another.