Which of the Following Is Not a Component of the Security

question 101

Multiple Choice

Which of the following is not a component of the security market line equation?

• A)risk-free rate
• B)expected return on the market
• C)an asset's systematic risk
• D)an asset's unsystematic risk

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Definitions:

Oil Prices

Oil prices denote the cost per barrel of crude oil, influenced by factors such as supply and demand, geopolitical issues, and market speculation.

Nonrenewable Natural Resource

Things such as oil, natural gas, and metals, that are either in actual fixed supply or that renew so slowly as to be in virtual fixed supply when viewed from a human time perspective.

Coal

A combustible black or brownish-black sedimentary rock used primarily as a source of energy.

Aquifers

Underground layers of water-bearing permeable rock, rock fractures, or unconsolidated materials from which groundwater can be extracted using wells.