THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 102

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A professor of statistics is interested in studying the relationship between the number of hours graduate students spent studying for his comprehensive final exam and the exam score.The results of the regression analysis of hours studied on exam scores are presented below.
-Using financial analysis based on the capital asset pricing model,the required return on an investment is given by:

• A)(Required return on investment)= (risk-free rate)+ [(beta for investment)× ((market return)- (risk-free rate))]
• B)(Required return on investment)= (beta for investment)+ [(risk-free rate)× ((market return)- (beta for investment))]
• C)(Required return on investment)= (beta for investment)+ [(beta for investment)× ((market return)- (risk-free rate))]
• D)(Required return on investment)= (market return)+ [(beta for investment)× ((market return)- (risk-free rate))]

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Definitions:

Mutual Misunderstanding

Mutual misunderstanding occurs when two or more parties have differing interpretations or perceptions about an agreement or situation.

Meeting of the Minds

A mutual agreement or consent among parties in a contract, indicated by a clear understanding and acceptance of essential terms and conditions.

Contract

A legally-binding agreement between two or more parties that outlines obligations and privileges.

Organizational Behavior

The study of how people interact within groups, particularly in a work context, including patterns of behavior and underlying psychological mechanisms.