Returns on Systematic Risk-Free Securities (Like U

question 39

Multiple Choice

Returns on systematic risk-free securities (like U.S.Treasury securities) should exhibit what type of correlation with returns on a diversified marketwide portfolio of stocks?

• A) nearly perfect correlation.
• B) perfect correlation.
• C) no correlation.
• D) Unable to tell without specifics about the portfolio.

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Definitions:

Extrinsic Motivation

A form of motivation driven by external rewards, such as money, fame, grades, and praise, or the avoidance of negative outcomes.

Homeostasis

The tendency of a biological system to maintain stability in its internal environment in response to external changes.

Humans Focusing

This is not a standard psychological term and may refer to the human tendency to concentrate or pay attention to certain stimuli over others. NO.

Specific Responses

Particular reactions to stimuli, often as a result of learning or conditioning.