In the Results of the Earliest Estimations of the Security

question 50

Multiple Choice

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

• A)positively related
• B)negatively related
• C)unrelated
• D)related in a nonlinear fashion
• E)None of the options