The Average Expected Rate of Return on Most fiNancial Assets

question 232

Multiple Choice

The average expected rate of return on most financial assets is the sum of the rates that compensate for

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

---

Definitions:

Anterior Curvature

The forward curvature of the spine, known as lordosis, which is normal in the cervical and lumbar regions.

Kyphosis

A spinal disorder causing an excessive outward curve of the spine, leading to a hunchbacked appearance.

Lumbar Spine

The lower part of the spine consisting of five vertebrae, which are designated L1 through L5 and are located in the lower back area.

Dactylogram

An impression or imprint of a finger; a fingerprint.