Use the Following Three Statements to Answer This Question

question 15

Multiple Choice

Use the following three statements to answer this question:

• A) I, II and III are correct.
• B) I and II are incorrect, III is correct.
• C) I, II are correct, III is incorrect.
• D) I, III are incorrect, II is correct.
• I.The CAPM points out that rational investors should be compensated for unique risk.
• II.The CAPM implies that non-systematic risk is the appropriate measure of risk to determine the risk premium required by investors for holding a risky security.
• III.The expected return from non-systematic risk is zero.

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Definitions:

Marine Sediments

Particles of organic and inorganic matter that accumulate in a loose, unconsolidated form on the ocean floor.

Internal Shear

Internal shear refers to the internal deformation of a material or geological structure due to shear stress.

Glacier

A large, slow-moving mass of ice formed by the accumulation and compaction of snow on mountains or near poles.

Bedrock

The solid rock layer beneath the soil or superficial material, serving as the foundation for geological features and construction.