A Risk Associated with Nicotine Gum Is

question 165

Multiple Choice

A risk associated with nicotine gum is:

• A)The flavour prevents many from completing a program of use designed to quit smoking.
• B)It can create increased blood pressure, leading to health risks for those with hypertension.
• C)Negative interactions with other prescription drugs.
• D)The resemblance it bears to other candies, making it appealing to children.

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Definitions:

Security Market Line

A graphical representation in the Capital Asset Pricing Model that shows the relationship between the expected return of an investment and its beta, representing risk.

APT

Stands for Arbitrage Pricing Theory, a model that predicts a security's returns using the linear relationship between its expected return and macroeconomic factors.

Factor Intensity

The measure of how much of a certain factor of production (labor, capital, etc.) is used in the production of a good or service.

APT Model

Arbitrage Pricing Theory Model, an alternative to the Capital Asset Pricing Model (CAPM), asserts that the expected return of a financial asset can be modeled as a linear function of various macro-economic factors or theoretical market indexes.