Identify Which of the Following Is Not an Explanation of Why

question 118

Multiple Choice

Identify which of the following is not an explanation of why the value system in the United States is unique.

• A) Geographically, the United States has been relatively isolated for most of its history.
• B) Historically, the United States has been unique; it was founded by a revolution that grew out of opposition to tyranny and aristocracy.
• C) Religiously, the Judeo-Christian ethic has emphasized humanitarians, the worth of the individual, etc.
• D) Culturally, the United States has been peopled largely by immigrants who shared a common culture.

---

Definitions:

Expected Returns

The anticipated profitability or yield an investment is projected to generate under normal circumstances.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Risk Premium

The additional return an investor requires to invest in a risky asset compared to a risk-free asset, compensating for the higher risk.

Arbitrage

The practice of profiting from price differences of the same asset in different markets, exploiting inefficiencies without market risk by simultaneously buying and selling.