If the Slope of the Line Measuring a Stock's Historic

question 31

Multiple Choice

If the slope of the line measuring a stock's historic returns against the market's historic returns is positive, then the stock:

• A) has a beta greater than 1.0.
• B) has no unique risk.
• C) has a positive beta.
• D)plots above the security market line.

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Definitions:

Classified

Information or materials that have been designated as confidential and restricted in terms of access and distribution.

Internal Versus External

A comparison between things happening within an organization or entity (internal) versus influences or actions originating from outside (external).

Solicited Versus Unsolicited

The comparison between requested and unrequested information, proposals, or submissions.

Yardstick Approach

A method of evaluation that uses a specific standard or benchmark as a basis for comparison or judgment.