Code of Ethics Refers to

question 182

Multiple Choice

code of ethics refers to

• A) a formal statement of moral and ethical business attitudes.
• B) a formal statement of ethical principles and rules of conduct.
• C) an informal guide of ethical principles and moral conduct.
• D) the written document stating the beliefs and values of each employee in a firm.
• E) a firm's itemized list of business activities that are and are not consistent with the company's mission statement.

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Definitions:

Market Risk Premium

The additional return investors expect to receive from an equity investment over the risk-free rate, compensating for taking on higher risk.

Negative Beta

A measure indicating the inverse relationship between the return of a stock and the return of the overall market.

SML

Security Market Line, a graphical representation of the Capital Asset Pricing Model (CAPM) showing the relationship between the expected return of a security and its risk.

CAPM

Short for Capital Asset Pricing Model, a financial model that describes the relationship between systematic risk and expected return for assets.