The Theory That States the Value of a Security Depends

question 81

Multiple Choice

The theory that states the value of a security depends on the time value of money, the reward for bearing systematic risk, and the amount of systematic risk is called the:

• A) reward-to-risk ratio.
• B) efficient frontier.
• C) capital asset pricing model.
• D) market risk premium.
• E) market pricing theory.

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Definitions:

Repression

A defense mechanism in psychoanalytic theory where unwanted or dangerous thoughts and desires are unconsciously excluded from consciousness.

Fourth-grade Class

A level of elementary education typically for children around nine to ten years old, focusing on subjects like mathematics, science, and language arts.

Short-term Memory

A part of the memory system where small amounts of information can be stored for a short period of time, typically seconds to minutes.

Social Security Number

A unique, nine-digit number assigned to U.S. citizens and eligible residents, used for tracking earnings and benefits within the social security system.