Which of the Statements A) Through D) Concerning De Santis

question 46

Multiple Choice

Which of the statements a) through d) concerning De Santis and Gérard's "How Big is the Premium for Currency Risk" [Journal of Financial Economics 1998] conditional asset pricing model is FALSE?

• A) Their model constrained risks and required returns to be constant over time.
• B) Currency risk is a small fraction of total risk in the United States stock market.
• C) Market risk is priced in international stock markets.
• D) Currency risk is priced in international stock markets.
• E) All of the above are true

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Earthquakes

Natural phenomena caused by a sudden release of energy in the Earth's crust, leading to ground shaking and, in some cases, causing great destruction.

Volcanoes

Openings in the Earth's crust from which lava, ash, and gases erupt.

High Mountains

Elevated landforms reaching great heights above the surrounding terrain, often formed by tectonic processes like collision and rifting.

Transform Boundary

A plate boundary in which two tectonic plates move horizontally past one another.