Which of the Following Statements Is False

question 21

Multiple Choice

Which of the following statements is false?

• A) The risk premium of a security is equal to the market risk premium (the amount by which the market's expected return exceeds the risk-free rate), divided by the amount of market risk present in the security's returns measured by its beta with the market.
• B) We refer to the beta of a security with the market portfolio simply as the securities beta.
• C) There is a linear relationship between a stock's beta and its expected return.
• D) A security with a negative beta has a negative correlation with the market, which means that this security tend to perform will when the rest of the market is doing poorly.

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Definitions:

Secondary Reinforcer

A stimulus that has become reinforcing through its association with a primary reinforcer.

Stimulus Discrimination

The ability to distinguish between different stimuli, even if they are similar, based on learned associations.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, triggers a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with a conditioned stimulus.