For the Last Five Years the S&P 500 Has Had

question 17

Multiple Choice

For the last five years the S&P 500 has had an average quarterly return of 4.5% and a standard deviation of 11.6%. If the average riskfree return was 2.2% per quarter, the slope of the S&P 500's CML is

• A) .42%.
• B) .02%.
• C) 3.62.
• D) .2.

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Definitions:

Psychoanalytic Approach

A psychological perspective focusing on unconscious mental processes and childhood experiences in shaping personalities and behaviors.

Stress

A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.

Homeostatic/Medical Approach

A perspective or method in medicine and psychology that focuses on the body's automatic processes to maintain internal stability and health in response to external changes.

Stress

A psychological or physical strain experienced by individuals in response to perceived challenges, demands, or threats in their environment.