Which One of the Following Is Most Directly Affected by the Level

question 7

Multiple Choice

Which one of the following is most directly affected by the level of systematic risk in a security?

• A)variance of the returns
• B)standard deviation of the returns
• C)expected rate of return
• D)risk-free rate
• E)market risk premium

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Definitions:

High-Low Method

A technique used to estimate variable and fixed components of a cost by analyzing the highest and lowest activity levels.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed values and those predicted by the line.

Scattergraph

A graphical representation that plots individual data points, often used to identify trends or correlations in data analysis.

Least Square Regression

A statistical method used to determine the line of best fit by minimizing the squared differences between observed values and the values predicted by the line.