Which One of the Following Must Be Equal for Two

question 7

Multiple Choice

Which one of the following must be equal for two individual securities with differing betas if those securities are correctly priced according to the capital asset pricing model?

• A)standard deviation
• B)rate of return
• C)beta
• D)risk premium
• E)reward-to-risk ratio

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Definitions:

Open System

An open system is a system that regularly exchanges feedback with its external environment. Open systems are adaptive in nature because they react to changes in the environment.

Organizational Internal

Refers to processes, practices, or issues that occur within an organization, as opposed to external or outward-facing ones.

Subsystems

Smaller, component systems that operate within a larger system, each serving a specific function contributing to the overall functionality.

Single-Loop Learning

A process where organizations make adjustments based on mistakes or errors but do not question the underlying policies or objectives.