The _____ Tells Us That the Expected Return on a Risky

question 81

Multiple Choice

The _____ tells us that the expected return on a risky asset depends only on that asset's nondiversifiable risk.

• A) Efficient Markets Hypothesis (EMH)
• B) systematic risk principle
• C) Open Markets Theorem
• D) Law of One Price
• E) principle of diversification

---

Definitions:

Crown Corporations

Government-owned companies or enterprises operated by the state, often to undertake commercial activities.

Married Women

Women who are legally bound in marriage, subject to specific legal rights and responsibilities that may differ based on jurisdiction.

Guarantor

A person, organization, or entity that agrees to be responsible for another's debt or obligations if that individual fails to fulfill them.

Infant

A minor; a person under the legal age of majority.