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:

Powerful Winds

Strong air movements within the Earth's atmosphere, which can result from various meteorological phenomena and influence weather patterns and climate.

Prairies

Extensive areas of flat or gently undulating grassland, especially in North America, with few if any trees, known for their rich soils and diverse ecosystems.

East And West Coasts

Refers to the eastern and western coastal regions of a continent, often used in context with the United States.

Canada's Southern Border

The geopolitical boundary that separates Canada from the United States, running along the 49th parallel north for much of its length.