Which of the Following Statements About Risk Is False

question 25

Multiple Choice

Which of the following statements about risk is false?

• A) Risk is one of the determinants of the required return.
• B) Risk requires the possibility of at least one outcome less favorable than the expected value.
• C) Risk requires the possibility of more than one outcome.
• D) High risk should require low return.

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Definitions:

Logistics

The management of the flow of goods, services, and information between the point of origin and the point of consumption to meet customer or corporate requirements.

Taxes

Mandatory financial charges or levies imposed by a government on individuals or organizations to fund public expenditures.

Total Profits

A rephrased definition would be: The cumulative financial gain a company achieves after deducting all operational, production, and overhead costs from its revenue.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at a given price level in a given period.