Which of the Following Statements Is Incorrect

question 23

Multiple Choice

Which of the following statements is incorrect?

• A)The security market line shows the relationship between risk and return for any stock or portfolio.
• B)The y-intercept of the security market line represents the return on the risk-free asset.
• C)The measure of risk used in creating the security market line is the standard deviation.
• D)none of these choices are complete.

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Definitions:

Functional Departments

are specialized units within an organization, such as marketing or finance, each focused on a specific area of operation contributing to the organization’s goals.

Substantive

Consisting of or relating to the essence or substantial nature of something, as opposed to its form or appearance.

Emotional

Emotional refers to feelings, emotions, or expressions that are related to one's mood, temperament, or state of mind.

Approach-avoidance Conflict

A psychological conflict characterized by a situation that has both attractive and repelling aspects, making decision-making difficult.