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A "Risky" Asset Will Earn a Rate of Return Close

Question 17

Multiple Choice

A "risky" asset will earn a rate of return close to that of "riskless" assets if its risk is:


A) nondiversifiable.
B) diversifiable.
C) nominal, as opposed to real.
D) related to the rate of inflation.
E) no greater than the risk of similar assets.

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