The Betas for the Market Portfolio and Risk-Free Security Are

question 111

Multiple Choice

The betas for the market portfolio and risk-free security are: $\begin{array}{lcc}&\text { Market } & \text { Risk-free } \\\hline \text { I. } & 0 & 1 \\\text { II. } & 1 & 0 \\\text { III. } & -1 & 1 \\\text { IV. } & 1 & -1 \\\text { V } & 2 & 1\end{array}$

• A) I
• B) II
• C) III
• D) IV
• E) V

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Definitions:

Sunk-cost Fallacy

The misconception of valuing continued investment in a project or decision based on the already incurred costs, irrespective of future benefits.

Fixed Costs

Expenses that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance premiums.

Sound Systems

Equipment designed for the reproduction of audio signals, typically involving a source, amplifier, and speakers.

Upgrade Costs

Upgrade costs are expenditures related to the improvements or updates of products, services, or systems to enhance performance or functionality.