We would not expect a Japanese financial asset and a U$.$S$.$ financial asset with identical risk, liquidity, and information characteristics to have different expected returns because

Question $13$Select one:

A$.$

traders would buy the asset with the higher expected yield and sell the asset with the lower expected yield until the yields were brought into equality.

B$.$

traders would sell the asset with the higher expected yield and buy the asset with the lower expected yield until the yields were brought into equality.

C$.$

the exchange rate between the dollar and the yen would adjust automatically to eliminate any difference in yields.

D$.$

the U$.$S$.$ and Japanese governments have pledged themselves to avoid this outcome.