Which of the Following Is True

question 27

Multiple Choice

Which of the following is true?

• A)In equilibrium, the risk-adjusted return to owning stock will be equal to the risk-adjusted return to owning bonds.
• B)The risk-adjusted return to owning stock is the nominal return less compensation for the higher risk of owning stock.
• C)In equilibrium, differences in returns on various financial instruments represent only differences in risk and liquidity.
• D)All of the above are true.

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Definitions:

Human Resources

The department within an organization that is responsible for hiring, training, employee relations, and benefits, aiming to maximize employee performance.

Performance Review

A formal assessment where an employee's work performance is evaluated, often to inform decisions on promotions, pay raises, and development.

Dissimilar Fillers

are non-relevant stimuli used in memory and recognition tasks in experiments to prevent participants from using cues or patterns in the test material to aid their recall or recognition.

Mistaken Identifications

Incorrectly recognizing a person or item as being someone or something else, often leading to false assumptions or judgments.