Given the Results of the Early Studies by Lintner (1965)

question 26

Multiple Choice

Given the results of the early studies by Lintner (1965) and Miller and Scholes (1972) , one would conclude that

• A)high beta stocks tend to outperform the predictions of the CAPM.
• B)low beta stocks tend to outperform the predictions of the CAPM.
• C)there is no relationship between beta and the predictions of the CAPM.
• D)high beta stocks and low beta stocks tend to outperform the predictions of the CAPM.
• E)None of the options

---

Definitions:

External Information

Data or knowledge acquired from outside sources, not derived from a person's immediate sensory experience or internal processes.

Achievement Goal

An objective oriented towards demonstrating competence or attaining a standard of excellence in a task or competition.

Goal Theory

A psychological framework focusing on motivation and explaining how individuals set goals and how these goals influence their behavior and performance.

Approach Goals

Objectives focused on achieving a positive outcome or advancing towards a desired end.