If Stock a Has a Higher Expected Return Than Stock

question 65

Multiple Choice

If Stock A has a higher expected return than Stock B,which of the following statements is most likely?

• A) Stock A has more specific 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:

Mentoring

A developmental relationship where a more experienced or more knowledgeable person helps to guide a less experienced or less knowledgeable person.

Career Success

Achieving personal satisfaction and goals in one's professional life, often marked by advancements and recognitions.

Formal Mentoring Programs

Structured initiatives designed to facilitate mentoring relationships, often within an academic or professional setting, aiming for growth and development.

Informal Ones

Casual or unofficial relationships or structures within organizations, contrasting with formal roles and hierarchies.