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Which Two of the Following Determine How Sensitive a Security

question 74

Multiple Choice

Which two of the following determine how sensitive a security is relative to movements in the overall market?
I. the standard deviation of the security
II. correlation between the security's return and the market return
III. the volatility of the security relative to the market
IV. the amount of unsystematic risk inherent in the security


Definitions:

Low-ball Technique

A persuasion strategy where an initially favorable deal is changed to less favorable terms after agreement.

Commitment and Consistency

The tendency for individuals to align their attitudes, beliefs, and behaviors with their previous decisions and actions to appear consistent to themselves and others.

Car Sales People

Individuals who specialize in selling cars, aiming to meet customer needs while generating profit for the dealership.

Low-ball Technique

A persuasion strategy in which an initial, attractive offer is made, followed by the revelation of additional costs or downsides.

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