A Scale Consisting of Multiple Items,in Which an Item Is

question 33

True/False

A scale consisting of multiple items,in which an item is a single question or statement to be evaluated is called a multi-item scale.

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Definitions:

Risk-free Rate

The theoretical rate of return on an investment with no risk of financial loss, typically represented by government bonds.

Market Risk Premium

The additional return an investor requires for holding a risky market portfolio instead of risk-free assets, reflecting the extra risk.

Required Return

The minimum expected return by investors for investing in a particular asset, considering the risk associated with it.

Beta

It is a measure of a stock's volatility in relation to the overall market, indicating the stock's relative risk.