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Memphic Memphic
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Posts: 728
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6 years ago
Which of the following statements is FALSE?
A) The risk premium of a security is equal to the market risk premium (the amount by which the market's expected return exceeds the risk-free rate), divided by the amount of market risk present in the security's returns measured by its beta with the market.
B) We refer to the beta of a security with the market portfolio simply as the securities beta.
C) There is a linear relationship between a stock's beta and its expected return.
D) A security with a negative beta has a negative correlation with the market, which means that this security tends to perform well when the rest of the market is doing poorly.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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EgorGruzdevEgorGruzdev
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Posts: 422
6 years ago
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Memphic Author
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6 years ago
Smart ... Thanks!
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Thanks for your help!!
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2 hours ago
You make an excellent tutor!
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