After Six Months in the Role,what Do New Managers Most

question 37

Multiple Choice

After six months in the role,what do new managers most typically believe their job is?

• A)to exercise formal authority  
• B)to maintain control and avoid delegation  
• C)to develop people's potential  
• D)to solve problems for subordinates

---

Definitions:

Security Market Line (SML)

Positively sloped straight line displaying the relationship between expected return and beta.

Arbitrage Pricing Theory (APT)

An equilibrium asset pricing theory that is derived from a factor model by using diversification and arbitrage. It shows that the expected return on any risky asset is a linear combination of various factors.

Arbitrage Pricing Theory (APT)

A financial model that estimates the price of assets based on the relationship between their expected return and macroeconomic factors that influence all assets' returns.

Market Risk Premium

The surplus return an investor aspires to earn by holding onto a market portfolio fraught with risks as compared to safeguarded, risk-free assets.