The Linear Relation Between the Returns on a Stock and the Returns

question 36

Multiple Choice

The linear relation between the returns on a stock and the returns on the market portfolio is called the:

• A)alpha
• B)beta
• C)covariance
• D)coefficient of variance

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Definitions:

Cognitive-affective Units

Psychological structures within an individual that influence how they perceive, evaluate, and respond to social stimuli.

Environmental Stimuli

External factors or changes in the environment that can affect an organism's behavior or physiological responses.

George Kelly

An American psychologist known for his personal construct theory, which focuses on how individuals interpret events.

Construct System

A psychological framework that represents an individual's unique collection of perceptions, beliefs, and attitudes.