Which one of the following will be constant for all securities if the market is efficient and securities are priced fairly?
A)variance
B)standard deviation
C)reward-to-risk ratio
D)beta
E)risk premium

Question

Quizplus · Accepted Answer

In an efficient market where securities are priced fairly, the reward-to-risk ratio should be constant across all securities. This is because any differences in expected returns should be compensated by differences in risk, ensuring that the reward for taking on additional risk is consistent across the market.

Which One of the Following Will Be Constant for All