According to the Risk-Return Ratio, Which of the Following Statements

question 30

Multiple Choice

According to the risk-return ratio, which of the following statements is correct?

• A) Decisions involving higher risk should yield higher returns.
• B) Decisions involving lower risk should yield higher returns.
• C) Decisions involving more risk should yield fewer returns.
• D) Decisions involving high risk should yield more predictable returns.

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Definitions:

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The measure of affluence, luxury, tangible assets, and vital provisions offered to a chosen demographic or geographical zone.

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A measure of how quickly the average cost of goods and services escalates, reducing the value of money to buy these over time.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar terms, helping in analyzing and comparing levels of economic activity over time.