Which of the Following Statements Is Incorrect

question 48

Multiple Choice

Which of the following statements is incorrect?

• A)The security market line shows the relationship between risk and return for any stock or portfolio.
• B)The y-intercept of the security market line represents the return on the risk-free asset.
• C)The measure of risk used in creating the security market line is the standard deviation.
• D)None of these statements is incorrect.

Calculate the net present value (NPV) of international projects in different currencies.

Comprehend the basics of purchasing power parity and its application in international finance.

Understand strategies for reducing long-run exposure risks in foreign exchange.

Apply the concept of forward rates in managing currency risk.

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Definitions:

Comparative Evaluation

The process of comparing one set of data, elements, or situations with another to assess its value or performance in relation to a standard or another entity.

Ranking Method

A method of evaluating employees that ranks them from best to worst on some trait.

Forced Distributions

A performance evaluation method where employees are ranked and rated according to a predetermined distribution curve, often to identify top performers, average performers, and underperformers.

360-Degree Performance

A method of performance assessment where an employee is evaluated by feedback from supervisors, peers, subordinates, and sometimes clients.