You Observe the Following Scatterplot of Ford's Weekly Returns Against

question 80

Multiple Choice

You observe the following scatterplot of Ford's weekly returns against the S&P 500.Which of the following statements is TRUE about Ford's beta against the S&P 500?

• A)Ford's beta appears to be positive.
• B)Ford's beta appears to be negative.
• C)Ford's beta appears to be zero- there is no apparent relation between its return and the S&P return.
• D)Ford's beta appears to be highly negative.
• E)Beta has nothing to do with the relationship seen in this scatterplot.

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Definitions:

Ultimate

Representing the final or most significant version of something, or the fundamental principles underlying a concept.

Arousal Theory

A theory in psychology that suggests individuals are motivated to engage in behaviors that help them maintain an optimal level of physiological arousal.

Optimal Level

The most favorable or efficient level of functioning, performance, or operation.

Drive Theory

A theory suggesting that behavior is motivated by the need to reduce internal tension caused by unmet biological needs.