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:

Yeast

A microscopic fungus consisting of single oval cells that reproduce by budding, and capable of converting sugar into alcohol and carbon dioxide.

Decubitus

A term often used to describe a body position lying down or a pressure sore.

Chloride Concentration

The amount of chloride ions present in a given volume of a solution, essential for maintaining proper fluid balance and blood volume.

Acne Scars

Markings or indentations on the skin resulting from the healing of acne.