Which of the Following Statements Is Incorrect

question 6

Multiple Choice

Which of the following statements is incorrect?

• A)The capital market line shows the relationship between return and risk as measured by the standard deviation.
• B)The Efficient Market Hypothesis states that security prices fully reflect all available information.
• C)The security market line shows the relationship between return and risk as measured by beta.
• D)None of these statements are correct.

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Definitions:

Inductance

The property of a conductor by which a change in current through it induces an electromotive force (EMF) in both the conductor itself and in any nearby conductors.

Henry

The unit of inductance in the International System of Units (SI), symbolized as H.

Parallel

A circuit configuration where components are connected across common points or junctions, allowing current to divide and flow through multiple paths.

Series

Components in an electrical circuit are said to be in series if they are connected along a single path, so the same current flows through all of the components.