Because investors can eliminate unsystematic risk "for free" by diversifying their portfolios, they ________
A) do not require a risk premium for bearing it
B) require a risk premium for bearing it
C) are indifferent about credit spread and risk premium
D) do not require a credit spread
Answer: A
Business
You might also like to view...
John is selling his property for $225,000. He has a loan balance of $50,000. He has agreed to provide financing to the purchasers in the amount of $200,000 and will continue to make payments on the original loan. This type of loan is called a
A) package loan B) wraparound loan C) blanket loan D) loan assumption
Business
A(n) ________ is a possible product the company might offer to the market
A) test brand B) alpha product C) beta version product D) product idea E) product concept
Business