A Valenced Attribute Is

question 23

Multiple Choice

A valenced attribute is

• A) an attribute with many, usually greater than 7, levels
• B) an attribute where some levels are universally preferred
• C) an attribute with one or more undetermined levels
• D) a constructed attribute that mixes one or more levels of other attributes

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Definitions:

Listed Beta

A measure of an asset's volatility relative to the market as a whole, often used to assess risk.

True Beta

The measure of a stock's volatility and systematic risk in comparison to the overall market, considering the actual observed market movements.

Security-market Line

A graphical representation that shows the expected rate of return of an investment as a function of its beta, or systematic risk, relative to the market as a whole.

Capital-market Line

A line in the capital market theory that depicts the risk-return trade-off for efficient portfolios, showing that higher risk leads to higher expected return.