Which of the Following Statements Is More Likely to Be

question 62

Multiple Choice

Which of the following statements is more likely to be correct concerning the statement,"Stock A has a higher expected return than stock B"?

• A) Stock A has more unique risk.
• B) Stock B plots below the security market line.
• C) Stock B is a cyclical stock.
• D) Stock A has a higher beta.

---

Definitions:

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or distressing thoughts and behaviors.

Growth-Impeding

Factors or conditions that hinder or slow down the natural development or enlargement of an organism, system, or process.

Psychoanalysis

A therapeutic approach that explores unconscious drives and conflicts, originated by Sigmund Freud.

Insight Therapy

A form of psychotherapy that aims to increase a patient's awareness of underlying motives and defenses to improve mental health.