As a General Pattern, _____ Tend to Have the Lowest

question 39

Multiple Choice

As a general pattern, _____ tend to have the lowest IQs.

• A) manual laborers
• B) professional workers
• C) technical workers
• D) white collar workers

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market, used in the capital asset pricing model to determine expected returns.

Market Risk Premium

The extra earnings an investor foresees from holding a risky market portfolio in comparison to risk-free assets.

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by the yield on government bonds like U.S. Treasury securities.

Semistrong Efficient

A form of market efficiency that states all public information is already calculated into stock prices, and thus, no one can achieve higher returns by trading on that information.