Which One of the Following Is the Best Indication That

question 5

Multiple Choice

Which one of the following is the best indication that a security is correctly priced according to the Capital Asset Pricing Model?

• A)beta of zero
• B)beta of 1.0
• C)alpha of zero
• D)alpha of 1.0
• E)alpha of −1.0

---

Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when exposed to stress.

Resistance

In psychology, resistance refers to the opposition or pushback against external demands, changes, or therapy progress, often arising from unconscious defenses.

GAS

General Adaptation Syndrome, a theory describing the body's short-term and long-term responses to stress.

Norepinephrine

A neurotransmitter and hormone associated with the body's fight-or-flight response, playing roles in attention, emotions, sleeping, dreaming, and learning.