3. Which of the following statements concerning risk and return is not correct?

a. Market risk includes a wide range of factors, including business cycles, changes in interest rates, global conflicts, as well as changes in consumer preferences.

b. Total return = yield + price change.

c. Exchange rate risk is the risk that currency fluctuations will cause an adverse effect on the return from an investment.

d. Liquidity risk is a more significant risk for securities such as Treasury bills.