If a Security Plots to the Right and Below the Security

question 95

Multiple Choice

If a security plots to the right and below the security market line, then the security has ____ systematic risk than the market and is ____.

• A)more; overpriced
• B)more; underpriced
• C)less; overpriced
• D)less; underpriced
• E)less; correctly priced

---

Definitions:

Confusion

The act of mingling or blending goods or property in such a way that they can no longer be distinguished; in legal terms, it can affect rights of ownership.

Negotiable Document of Title

A document guaranteeing the possession and control of goods, which can be transferred to another party to facilitate commerce.

Legal Title

The formal right of ownership of property, which may or may not include the right to use or occupy the property.

Friendly Fire

Incidents in which persons are inadvertently harmed or killed by forces from their own side during an armed conflict or military operation.