Which of the Following Is a FALSE Statement About the Security

question 108

Multiple Choice

Which of the following is a FALSE statement about the security market line (SML) ?

• A)It is upward sloping, which indicates that investors require a higher expected return on riskier securities.
• B)It represents the trade off between total risk and the required rate of return for any risky security.
• C)It indicates that the size of the risk premium varies directly with a security's market risk, as measured by beta.
• D)It implies that securities with betas less than the market beta of 1.0 are less risky than the "average" stock and will therefore have lower required rates of return.

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Definitions:

Employee Assistance Programs

Programs offered by employers to provide confidential assistance to employees dealing with personal or professional issues that may impact their job performance.

Wellness Programs

Initiatives provided by an organization aimed at improving the health and well-being of its employees through prevention and lifestyle changes.

Health Care Benefits

Refers to the health insurance or plans provided by an employer to cover the medical expenses of employees and their families.

Severance Pay

Financial compensation awarded to an employee upon termination of employment, often based on length of service or terms of an employment contract, as a form of support.