A Higher ________ Means That an Asset's Return Is More

question 133

Multiple Choice

A higher ________ means that an asset's return is more sensitive to changes in the value of the market portfolio.

• A)alpha
• B)beta
• C)CAPM
• D)APT

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Definitions:

Ridge Push

A tectonic process driven by gravitational forces that cause the spreading of the seafloor away from oceanic ridges.

Asthenosphere

A region of the Earth's mantle lying below the lithosphere, characterized by relatively low viscosity and mechanical weakness.

Lithosphere

The hard external layer of Earth, made up of the crust and the top section of the mantle.

Driving Forces

Factors or energies that lead to changes in a physical system or environment, often initiating or influencing processes.