The Line Plotted to Fit Observations of a Stock's Returns

question 85

Multiple Choice

The line plotted to fit observations of a stock's returns versus the market's returns determines the:

• A)security market line.
• B)Beta of the stock.
• C)market risk premium.
• D)capital asset pricing model.

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Definitions:

Reproductive Potential

The capacity or ability of an organism to produce offspring in its lifetime.

Physically Attractive

Having physical features that are considered pleasing or appealing to the senses, particularly in human appearance.

Sociable

Characteristic of one who seeks and enjoys the company of others; outgoing and friendly.

Competent

Having the necessary ability, knowledge, or skill to do something successfully or efficiently.