Which One of the Following Advance/decline Lines Is the Most

question 64

Multiple Choice

Which one of the following advance/decline lines is the most bullish signal?

• A)relatively flat
• B)slightly upward sloping
• C)slightly downward sloping
• D)steeply upward sloping
• E)steeply downward sloping

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Definitions:

Security Market Line

A graphical representation of the risk-return trade-off for individual securities, illustrating the capital asset pricing model (CAPM).

Risk-free Rate

The yield from an investment that carries no risk of losing money.

Expected Return

Return on a risky asset expected in the future.

After-tax Cost

The actual cost of an expense after the deduction of any taxes.