Use the Following Three Statements to Answer This Question

question 69

Multiple Choice

Use the following three statements to answer this question:
I.The CAPM points out that rational investors should be compensated for unique risk.
II.The CAPM implies that non-systematic risk is the appropriate measure of risk to determine the risk premium required by investors for holding a risky security.
III.The expected portfolio return from non-systematic risk is zero.

• A)I, II and III are correct.
• B)I and II are incorrect, III is correct.
• C)I, II are correct, III is incorrect.
• D)I, III are incorrect, II is correct.

---

Definitions:

Anxious-Ambivalent

A type of insecure attachment style where individuals are overly needy and preoccupied with their relationships.

Obsessive

Characterized by persistent and intrusive thoughts, urges, or images that cause significant anxiety or distress.

Anxious-Ambivalent Children

Children who display insecurity and anxiety in relationships, often resulting from inconsistent caregiving responses.

Attachment Behaviors

Actions or patterns of behavior that seek proximity to a specific attachment figure to provide comfort, security, or safety.