Which of the Following Was True of Most Chesapeake Families

question 32

Multiple Choice

Which of the following was true of most Chesapeake families in the seventeenth-century?

• A) They made most of their own clothes and farm implements.
• B) They did not spend much money on material possessions beyond the necessities.
• C) They lived luxurious lives of leisure.
• D) They had to import most of their food from England because they concentrated on growing cash crops.

---

Definitions:

Non-Diversifiable Risk

A type of investment risk that cannot be eliminated through diversification, arising from factors that affect all companies.

Efficient Markets Hypothesis (EMH)

The hypothesis is that actual capital markets, such as the TSX, are efficient.

CAPM

Capital Asset Pricing Model, a theory that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Security Market Line (SML)

Positively sloped straight line displaying the relationship between expected return and beta.