If the Slope of the Line Measuring a Stock's Historic

question 31

Multiple Choice

If the slope of the line measuring a stock's historic returns against the market's historic returns is positive, then the stock:

• A) has a beta greater than 1.0.
• B) has no unique risk.
• C) has a positive beta.
• D)plots above the security market line.

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Definitions:

Risks

Potential for experiencing harm or loss when engaging in an activity or situation.

Deception

The act of misleading or tricking someone into believing something that is not true.

Ethical

Pertaining to moral principles or the branch of knowledge dealing with these, often guiding conduct.

Participants

Individuals who take part in a study, survey, or experiment, often contributing data or responses to research.