A "Risky" Asset Will Earn a Rate of Return Close

question 17

Multiple Choice

A "risky" asset will earn a rate of return close to that of "riskless" assets if its risk is:

• A) nondiversifiable.
• B) diversifiable.
• C) nominal, as opposed to real.
• D) related to the rate of inflation.
• E) no greater than the risk of similar assets.

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Definitions:

Unified Communications

A system that integrates various communication tools and platforms within an organization into a single, cohesive interface.

Intranets

Private networks accessible only to an organization's staff, often used to share information, tools, and resources internally.

Extranets

Private networks that allow outside parties limited access to a company's internal information system.

Content Management Systems

Computer systems that organize and control the content for websites.