A Positive Statement

question 8

Multiple Choice

A positive statement

• A) must always be right.
• B) cannot be tested.
• C) might be right or wrong.
• D) depends on someone's value judgment.
• E) cannot be negative.

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Definitions:

SML

The Security Market Line (SML) is a graphical representation of the Capital Asset Pricing Model (CAPM), showing the relationship between the expected return of investments and their risk as measured by beta.

Stable Equilibrium

A condition in which a system tends to return to its original state after a disturbance, indicating stability and balance.

Probabilities Of Loss

Probabilities of loss indicate the likelihood or risk of an investment resulting in a financial loss rather than a gain or profit.

Higher Returns

Earning more income on an investment relative to its cost, indicative of successful investments or strategies.