A Behavioral Scientist Wishes to Know More About the Walking

question 16

Multiple Choice

A behavioral scientist wishes to know more about the walking habits of university students across a particular campus sidewalk.She positions herself out of sight of the students who are walking and records the time required for several of them to pass between two fixed points along the sidewalk.This study is best described as a(n) _____ study.

• A) observational
• B) educational
• C) experimental
• D) scientific

---

Definitions:

Security-market Line

A graphical representation of the relationship between expected return and beta (systematic risk) of an investment.

Capital-market Line

A line on a graph representing the rates of return for efficient portfolios that optimally balance risk and return, based on the risk-free rate and the market portfolio.

Capital-allocation Line

A line on a graph that represents the risk-and-return profiles of risky assets, showing the possible combinations of risk and return that are available.

Efficient Frontier

A concept in modern portfolio theory representing a set of optimal investment portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.