Lisa Has Just Moved to a New City

question 17

Multiple Choice

Lisa has just moved to a new city. In order to meet new people, she joins a local book club. She did this for _____.

• A) needs satisfaction
• B) norm conformation
• C) instrumental benefits
• D) group goals
• E) interpersonal attraction

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Definitions:

Equilibrium Risk Premium

The expected return on a risky asset over the risk-free rate that brings the supply and demand for the asset into balance.

Risk-free Rate

The interest rate at which an investor can invest in an absolutely risk-free security over a specified period.

Arbitrage Opportunity

A situation where a trader can profit from differences in price of the same or similar financial instruments on different markets or in different forms.

Risk-free Rate

The theoretical rate of return of an investment with no risk of financial loss, often represented by government bonds.