Which of the Following Statements Is Incorrect

question 23

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 choices are complete.

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Definitions:

Advertising Budget

The specific amount of money allocated by a company for promoting its products or services through various advertising channels within a specific timeframe.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit.

Wire Strippers

A hand tool used for stripping the insulation from electric wires, essential in electrical wiring tasks.

Manufacturer

An entity engaged in the business of producing goods for sale, using labor, machinery, and raw materials.