Which One of the Following Will Be Constant for All

question 53

Multiple Choice

Which one of the following will be constant for all securities if the market is efficient and securities are priced fairly?

• A)variance
• B)standard deviation
• C)reward-to-risk ratio
• D)beta
• E)risk premium

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Definitions:

Quarterly Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits on a quarterly basis.

Dividend Income

Income received from owning shares of a company which pays out earnings to its shareholders.

Shares

Units of ownership interest in a corporation or financial asset, providing a portion of the profits to shareholders in the form of dividends.