As a Result of Silent Spring, ________________________

question 2

Multiple Choice

As a result of Silent Spring, ________________________.

• A) most farmers stopped using pesticides until they were proven to be environmentally safe
• B) the widespread use of DDT in the United States ended
• C) the government established a process by which it began to test the safety of America's farm produce
• D) environmentalists organized a boycott that was successful in forcing farmers to stop using harmful pesticides

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Definitions:

Expected Risk Premium

The additional return over the risk-free rate that investors demand to compensate for the risk of holding a risky asset.

Systematic Risk Principle

The concept that an investor can reduce the overall risk of an investment portfolio through diversification, except for inherent market risks that cannot be diversified away.

Efficient Markets Hypothesis

The efficient markets hypothesis is an investment theory that states it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information.

Security Market Line

A representation in finance that shows the relationship between risk and return of a market.