The Relation Between the Required Rate of Return and Beta

question 63

Multiple Choice

The relation between the required rate of return and beta is called the:

• A)security market line.
• B)capital market line.
• C)characteristic line.
• D)systematic risk.
• E)unsystematic risk.

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Definitions:

Downward Comparisons

A psychological strategy where individuals compare themselves to others who are worse off in order to feel better about their own situation.

Presumptive Reasoning

A form of logical thinking that makes assumptions based on general rules or past experiences, leading to conclusions that are taken as likely true.

Violent Crimes

Acts of crime that involve the use of force or the threat of force against others, such as murder, rape, and assault.

Effective Functioning

The capability of an individual or system to achieve its goals or fulfill its purpose with efficiency and effectiveness.