The Risk Free Rate, Average Returns, Standard Deviations and Betas

question 74

Multiple Choice

The risk free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below.
-Which one of the following is largely based on forecasts of macroeconomic factors?

• A) Security selection
• B) Passive investing
• C) Market efficiency
• D) Market timing

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Definitions:

Trieb

A German term used by Freud, often translated as "drive" or "instinct", referring to the internal forces that motivate behavior.

Motivating Forces

The internal or external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Sex Act

Physical activities involving sexual intercourse or other forms of sexual expression between individuals.

Paradoxical

Characterized by seemingly contradictory qualities that may nevertheless be true when observed from different perspectives.