Refer to the Figure

question 6

Multiple Choice

Refer to the figure. Which of the following forms a monophyletic group?

• A) A, B, C, D
• B) C and D
• C) D, E, and F
• D) E, F, and G

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Definitions:

Beta

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

Treynor Measure

A performance metric for determining how well an investment compensates the investor for the risk taken, considering systematic risk.

Risk-Free Return

The theoretical return of an investment with zero risk, often represented by the yield of government bonds like U.S. Treasury bonds.

Betas

A metric that assesses the systematic risk or volatility faced by a security or portfolio in contrast to the entire market.