Briefly Discuss Why There Is No Reason to Believe That

question 89

Essay

Briefly discuss why there is no reason to believe that the market will reward investors with additional returns for assuming unsystematic risk.

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Definitions:

Binding Contract

An agreement between two or more parties that is legally enforceable in a court of law.

Present Intent

The current intention or determination to engage in a particular action or effect a legal consequence.

Subjective Standard

A legal standard that is based on personal feelings, tastes, or opinions, making it subject to individual judgment rather than objective observation.

Silent Acceptance

An implied agreement to a proposal demonstrated through an individual's actions rather than explicitly expressed consent.