Stock A's Beta Is 1

question 80

Multiple Choice

Stock A's beta is 1.5 and Stock B's beta is 0.5.Which of the following statements must be true,assuming the CAPM is correct.

• A) Stock A would be a more desirable addition to a portfolio then Stock B.
• B) In equilibrium,the expected return on Stock B will be greater than that on Stock A.
• C) When held in isolation,Stock A has more risk than Stock B.
• D) Stock B would be a more desirable addition to a portfolio than A.
• E) In equilibrium,the expected return on Stock A will be greater than that on B.

Relate the structure of an aromatic compound to its reactivity and the types of reactions it undergoes.

Apply concepts of aromaticity to describe the stability of molecules.

Identify and classify nitrogen atoms in organic compounds based on their basicity and the availability of lone pair electrons.

Develop and propose structures for unknown compounds using spectral data and interpret fragmentation patterns in mass spectrometry.

---

Definitions:

Gender Difference

Variations in characteristics, behaviors, or conditions often observed between males and females, influenced by biological, social, and cultural factors.

The Bell Curve

A statistical graph in the shape of a bell that represents a normal distribution of a set of data, with most occurrences falling near the mean.

Cognitive Ability

The capacity to perform various mental activities related to learning, problem-solving, decision-making, and comprehension.

Field-Independent Style

A cognitive style where individuals tend to be more analytical and less influenced by the surrounding context in their perception and actions.