The Slope of the Line Fitted to a Plot of a Stock's

question 76

Multiple Choice

The slope of the line fitted to a plot of a stock's returns versus the market's returns measures the:

• A) security market line.
• B) beta of the stock.
• C) market risk premium.
• D) capital asset pricing model.

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Definitions:

Discourage

To dissuade or deter someone from doing something through persuasion or by creating doubts or fears.

Maintain

To keep something in an existing state or condition, preventing it from deteriorating or ensuring its continual effectiveness.

Avoid

To deliberately stay away from or prevent an event or situation from happening.

One-Upmanship

The practice of gaining a competitive advantage or superiority over others, often through clever but sometimes dubious means.