In the Results of the Earliest Estimations of the Security

question 6

Multiple Choice

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

• A)positively related
• B)negatively related
• C)unrelated
• D)inversely related
• E)not proportional

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Definitions:

Sensory Neurons

Nerve cells within the nervous system responsible for converting external stimuli from the organism's environment into internal electrical impulses.

Peripheral

Refers to devices or units that are external to the central processing unit of a computer but connected to it, enhancing its capabilities.

Vascular

Pertaining to blood vessels or the transport system for blood flow in the body.

Parasympathetic

refers to the part of the autonomic nervous system that conserves energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles in the gastrointestinal tract.