For Each 1% Change in the Market Portfolio's Excess Return,the

question 87

Multiple Choice

For each 1% change in the market portfolio's excess return,the investment's excess return is expected to change by ________ percent due to risks that it has in common with the market.

• A)beta
• B)alpha
• C)zero
• D)cannot say for sure

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Definitions:

Scientific Management

A theory developed by Frederick W. Taylor, focusing on improving economic efficiency and labor productivity through systematic procedures and empirical studies.

Work Methods

Work methods are the techniques, strategies, and processes employed to carry out tasks or activities efficiently and effectively.

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency and labor productivity.

Productivity

Productivity refers to the efficiency of production of goods or services expressed by some measure, typically output per unit of input.