One Way to Express the Trade-Off Between Risk and Return

question 35

Multiple Choice

One way to express the trade-off between risk and return for an individual security is through:

• A)the security market line.
• B)the beta coefficient.
• C)the correlation coefficient.
• D)arbitrage pricing theory.

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Definitions:

Work Ethic

A set of moral principles a person uses in their job, often characterized by diligence, reliability, and responsibility.

Immoral

Actions or behavior that go against accepted standards of right and wrong.

Intrinsic Motives

Inner drives or motivations to perform an activity for its own sake, because it is interesting or satisfying in itself.

Hierarchy of Needs

A theory proposed by Abraham Maslow that suggests human actions are motivated by an ascending order of needs, starting from basic physiological needs to self-actualization.