Which of the Following Is NOT a Common Form of a Model

question 43

Multiple Choice

Which of the following is NOT a common form of a model?

• A) verbal model
• B) graphical model
• C) mathematical model
• D) technological model
• E) A and B

---

Definitions:

Expected Return

The forecasted amount of profit or loss an investment is projected to generate, expressed as a percentage of the total invested capital.

Portfolio Weight

The percentage composition of a particular holding in relation to the total value of the portfolio, used to assess diversification and risk.

Security Market Line

A graphical representation in financial market theory that depicts the relationship between risk (measured as beta) and expected return for the entire market.

Beta

A way of measuring the level of erratic behavior, or systemic threat, in a security or investment group in perspective of the general market.