The Required Return on an Asset Is an Increasing Function

question 187

True/False

The required return on an asset is an increasing function of its nondiversifiable risk.

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Definitions:

Code of Conduct

A Code of Conduct is a set of rules outlining the norms, rules, and responsibilities or proper practices for an individual, party or organization.

Magnitude of Consequences

The scale or significance of the outcomes that result from a decision or action.

Ethical Issue

A situation or problem that requires individuals or organizations to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

Accruing Benefits

Refers to the gradual accumulation of advantages or positive outcomes over time as a result of certain actions or investments.