Which of the Following Is True

question 52

Multiple Choice

Which of the following is true?

• A)The equilibrium return on a stock is based solely on a risk premium associated with owning the stock.
• B)The equilibrium return on a stock is based on the firm specific risk, as measured by beta, only.
• C)The equilibrium return on a stock should be based on the risk free return, and a market and firm specific risk.
• D)At any time, more people are usually trying to buy stock rather than to sell stock.

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Definitions:

Reproductive Life

Refers to the period in a person's life when they are able to conceive or father children.

Birth

The act or process of bearing or bringing forth offspring.

Innominate Bone

Another term for the hip bone, which is formed by the fusion of the ilium, ischium, and pubis bones.

Ischium

One of the three bones that make up the pelvis, located in the lower part of the pelvis.