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In the Results of the Earliest Estimations of the Security

question 53

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 nonsystematic risk and ________ to its beta.


Definitions:

Communal Societies

Societies characterized by shared or communal ownership and management of resources, often emphasizing collective over individual action and interests.

Social Harmony

A state of peaceful existence and mutual understanding within a community or society, often achieved through shared norms and values.

Gender Typing

The process by which children acquire the values, motives, and behaviors viewed as appropriate for their gender in their culture.

Gender Identity

A person's own perception of their gender identity, which might not align with the gender assigned at birth.

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