The Difference Between a Short Answer Question and an Essay

question 11

Multiple Choice

The difference between a short answer question and an essay question was demonstrated in the text using the example of which of the following?

• A) the four most important reasons to reduce stress
• B) the four most important battles of the Revolutionary War
• C) the four most important battles of the Civil War
• D) the four most important foods to eat for a healthy lifestyle

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Definitions:

Required Rate of Return

The minimum annual percentage return an investor expects to earn from an investment to consider it worthwhile.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual, exchange-traded, and closed funds.

Market Risk Premium

The additional yield investors anticipate from maintaining a portfolio with inherent market risk rather than opting for assets free of risk.

Required Rate of Return

The minimum annual percentage return investors expect or demand from an investment, considering the risk involved.