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:

Agricultural Societies

Those in which plows and animal power are used to substantially increase food supply and dependability as compared with horticultural and pastoral societies. Agricultural societies first emerged about 5000 years ago. Average settlement size and permanence, the division of labor, productivity, and inequality are higher in agricultural societies than in horticultural and pastoral societies.

Class Analysis

The study and examination of social classes and their relationships, often focusing on issues of inequality and power.

Property Owners

Individuals or entities that hold legal title to land, buildings, or other assets.

Non-Owners

Individuals or entities that do not hold ownership rights over a specific property, asset, or business.