Which of the Following Statements Is FALSE

question 85

Multiple Choice

Which of the following statements is FALSE?

• A)We refer to the beta of a security with the market portfolio simply as the 'securities beta'.
• B)The risk premium of a security is equal to the market risk premium (the amount by which the market's expected return exceeds the risk-free rate)divided by the amount of market risk present in the security's returns measured by its beta with the market.
• C)A security with a negative beta has a negative correlation with the market, which means that this security tends to perform well when the rest of the market is doing poorly.
• D)There is a linear relationship between a share's beta and its expected return.

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Definitions:

Channel Conflict

A situation where channels for the same product or service compete with each other, potentially reducing profitability for one or all channels involved.

Exclusive Distribution

A distribution strategy where a product is sold exclusively through a specific retailer or distributor.

Distribution Density

The measure of how widely and closely a product or service is made available to potential customers through various retail outlets or distribution channels.

Specified Geographical Area

A distinct region or zone designated for certain activities, operations, or jurisdictional purposes.