The Slope of the Security Market Line Is

question 32

Multiple Choice

The slope of the security market line is:

• A) E(R_m) - R_f
• B) 1/(E(R_m) - R_f)
• C) R_f - E(R_m)
• D) R_f

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Definitions:

Path-goal Theory

A leadership theory that suggests that the leader's job is to assist followers in attaining their goals and to provide the necessary direction and support to ensure that their goals are compatible with the overall objectives of the group or organization.

Path-Goal Theory

A theory that emphasizes how leaders can increase subordinate satisfaction and performance by clarifying the paths to goal achievement.

Follower Obstacle

Challenges or barriers that followers may encounter in their efforts to contribute effectively to their team or organization's goals.

Formal Authority System

A structured system where power and decision-making responsibilities are clearly defined within an organization.