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.

---

Definitions:

Automated Systems

Technologies or systems designed to perform tasks automatically, often improving efficiency and accuracy in processes.

Surveys

Research tools consisting of a series of questions designed to gather information from respondents about their knowledge, attitudes, preferences, or behaviors.

Multiple-Choice Questions

A type of question that presents respondents with several answers, from which they must select the correct option.

Replicability

The ability of an experiment or study to be duplicated or reproduced to verify results.