For Most Financial Assets, Investors Must Be Compensated for

question 66

Multiple Choice

For most financial assets, investors must be compensated for

• A)nondiversifiable and diversifiable risk.
• B)diversifiable risk and time preference.
• C)nondiversifiable risk and time preference.
• D)nondiversifiable and diversifiable risk, and time preference.

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Definitions:

Social World

The sphere of human interaction and relationship, influenced by cultural, economical, and political structures.

Urbanization

The process by which cities grow and societies become more urban, typically involving the migration of people from rural to urban areas.

Agricultural

Pertaining to farming or the cultivation of plants and animals to produce food, fiber, medicinal plants, and other products to sustain and enhance human life.

Centralized World

A theoretical or literal global arrangement where power, governance, or economic systems are concentrated within a single central location or authority.