Which of the Following Statements Is Incorrect

question 94

Multiple Choice

Which of the following statements is incorrect?

• A) The Security Market Line shows the relationship between risk and return for any stock or portfolio.
• B) The y-intercept of the Security Market Line represents the return on the risk-free asset.
• C) The measure of risk used in creating the Security Market Line is the standard deviation.
• D) None of these statements are incorrect.

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Definitions:

Repression

A defense mechanism where distressing thoughts and feelings are unconsciously excluded from conscious awareness.

Interference

A phenomenon where stored information is difficult to retrieve due to the presence of other similar information or distractions.

Misinformation Effect

A phenomenon where a person's recall of an event becomes less accurate because of post-event information.

Source Amnesia

A type of amnesia in which someone can remember certain information but not the context or source from where that information was acquired.