If an Asset Has a Risk-Return Combination That Is Above

question 84

Multiple Choice

If an asset has a risk-return combination that is above the Security Market Line (SML) , then arbitrage will make that asset's:

• A) Beta increase
• B) Beta decrease
• C) Average expected return increase
• D) Average expected return decrease

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A personality dimension referring to an individual's level of sociability, energy, and tendency to seek stimulation in the company of others.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty.

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