Which Statement Is Correct

question 28

Multiple Choice

Which statement is correct?

• A)An underpriced security will plot below the security market line.
• B)A security with a beta of 1.54 will plot on the security market line if it is correctly priced.
• C)A portfolio with a beta of .93 will plot to the right of the overall market.
• D)A security with a beta of .99 will plot above the security market line if it is correctly priced.
• E)A risk-free security will plot at the origin.

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Definitions:

RC7S

RC7S refers to a specification for a surface finish, indicating the roughness and texture desired on a machined surface, often used in engineering drawings.

Basic Shaft System

A referencing system for tolerances in mechanical engineering, focusing on the dimensions and fit of shafts.

Basic Hole System

A system of fits commonly used in engineering where the hole size is kept constant, and the shaft size is varied to achieve the desired fit.

Standard Fit

Describes the dimensional relationship between interacting parts to ensure compatibility and functionality.