Match the Description with Its Most Closely Associated Term

question 91

Multiple Choice

Match the description with its most closely associated term.
-Primary meridian

• A)these are lines that extend from the North Pole to the South Pole
• B)these form progressively smaller circles from the equator to the poles
• C)also known as Greenwich

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Definitions:

Expected Return

The forecasted amount of profit or loss an investment is likely to generate over a given period.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher volatility than the market.

SML

The Security Market Line, a graphical representation of the Capital Asset Pricing Model (CAPM) showing the relationship between the expected return of a security and its risk.

CML

The Capital Market Line, representing the risk-return trade-off of efficient portfolios in the capital market theory; it shows the highest return possible for any given level of risk.