Securities with Betas Greater Than L Should Have

question 4

Multiple Choice

Securities with betas greater than l should have:

• A)expected returns higher than the market.:::::
• B)required returns higher than the market return.
• C)required returns lower than the market return.
• D)no systematic risk.

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Definitions:

Radical Behaviorists

Psychologists or theorists who advocate for a strict approach to understanding human behavior, emphasizing the observable and quantifiable aspects of behavior over internal phenomena like thoughts or emotions.

Observable Behaviors

Actions or reactions of an individual in various situations that are visible and can be noted by others or measured in a study.

Pragmatists

Pragmatists are thinkers who advocate for a practical approach to problems and theories, emphasizing the value of actions that lead to useful outcomes and the role of experience in the formation of knowledge.

Reality

The state of things as they actually exist, outside of perception or belief.