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.

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Definitions:

MT

Modus Tollens, a form of logical argument or a rule of inference allowing one to deduce a conclusion from a hypothetical proposition and its denial.

Add

In context, add might not be a specific key term without further context; it typically means to combine or sum quantities in mathematics.

Assumption

Something presumed to be true or certain to occur, even without evidence.

Simp

A slang term often used colloquially to describe someone who performs excessive sympathy and attention toward another person, sometimes in pursuit of a romantic relationship, typically perceived as not reciprocated or appreciated to the same extent.