In the Results of the Earliest Estimations of the Security

question 36

Multiple Choice

In the results of the earliest estimations of the security market line by Lintner (1965) and by Miller and Scholes (1972) ,it was found that the average difference between a stock's return and the risk-free rate was ________ to its nonsystematic risk.

• A) positively related
• B) negatively related
• C) unrelated
• D) related in a nonlinear fashion
• E) none of these

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Definitions:

Recurring Memories

Repeatedly experiencing remembrances of past events, often intrusive and sometimes associated with trauma.

Compulsive Need

An overwhelming and uncontrollable urge to perform particular actions or behaviors, often driven by anxiety or psychological stress.

Increased Arousal

A heightened state of sensory sensitivity and physiological readiness for action, often associated with anxiety or stress.

Derealization

An alteration in perception leading to the feeling that the external world is strange, unreal, or distant.