The Risk Free Rate, Average Returns, Standard Deviations and Betas

question 74

Multiple Choice

The risk free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below.
-Which one of the following is largely based on forecasts of macroeconomic factors?

• A) Security selection
• B) Passive investing
• C) Market efficiency
• D) Market timing

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Definitions:

Level of Arousal

A state of physiological and psychological alertness or readiness, often linked to performance and activity.

Sexual Response Cycle

A sequence of physical and emotional phases that humans experience during sexual activity, including stages of excitement, plateau, orgasm, and resolution.

Refractory Period

The period of time during which a cell or organ cannot replicate a particular action, such as the time after a nerve impulse during which a neuron is unable to fire again.

Orgasmic

Pertaining to or resembling orgasm, the peak of sexual excitement characterized by intense pleasure and release of tension.