Matching
Match the following:
Premises:
Market risk
Responses:
The observation that investors always choose less risky stocks when expected returns are equal.
Risk associated with inflation, interest rates, recession, etc., things that tend to affect all stocks.
The reward for bearing market risk
Risk associated with a specific industry or firm
Correct Answer:
Premises:
Responses:
The observation that investors always choose less risky stocks when expected returns are equal.
Risk associated with inflation, interest rates, recession, etc., things that tend to affect all stocks.
The reward for bearing market risk
Risk associated with a specific industry or firm
Premises:
The observation that investors always choose less risky stocks when expected returns are equal.
Risk associated with inflation, interest rates, recession, etc., things that tend to affect all stocks.
The reward for bearing market risk
Risk associated with a specific industry or firm
Responses:
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