Which of the Following Is NOT Characteristic of a Secondary

question 21

Multiple Choice

Which of the following is NOT characteristic of a secondary group?

• A) They are larger and more anonymous than primary groups.
• B) They are often formal or impersonal.
• C) They tend to be based on specific roles or activities.
• D) They sometimes break down into primary groups.
• E) They depend on emotional intimacy for their existence.

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield of government bonds from stable governments.

Market Risk Premium

This is the extra return expected by investors for holding a risky market portfolio instead of risk-free assets.

Security Market Line

A line that represents the risk versus expected return of the market; used to assess the performance of investments compared to the market.

Systematic Risk

The inherent risk associated with the overall market or economy that cannot be eliminated through diversification.