The Slope of the Security Market Line Is Equal to The

question 60

Multiple Choice

The slope of the security market line is equal to the:

• A)market risk premium.
• B)risk-free rate of return.
• C)market rate of return.
• D)market rate of return multiplied by any security's beta, given an inefficient market.
• E)market rate of return multiplied by the risk-free rate.

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Definitions:

Bases

Substances that can accept hydrogen ions (protons) or more generally, donate electron pairs, in chemical reactions.

Complementary Strand

A nucleic acid strand that forms a sequence match according to the base pairing rules with another strand.

Base Sequence

The order of nucleotide bases in a DNA or RNA molecule that encodes genetic information.

Uracil

A nitrogenous base found in RNA that pairs with adenine during RNA synthesis.