Which of the Following Is NOT a Characteristic of Exchange

question 25

Multiple Choice

Which of the following is NOT a characteristic of exchange theory?

• A) Older people with the greatest resource in an exchange with younger people are the most capable of remaining engaged.
• B) If costs are greater than benefits, social interaction will be limited.
• C) If benefits are greater than cost, rewards will be limited.
• D) Maintaining an exchange relationship can be a struggle for people with few resources.

---

Definitions:

Market Risk Premium

The additional yield investors anticipate for maintaining a portfolio of risky securities over safe assets.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield of government bonds.

Risk Aversion

A preference for avoiding losses over achieving equivalent gains.

Security Market Line

A representation in financial markets showing the relationship between risk and return for individual securities.