According to the Trade-Off Between Risk and Return, Which Asset

question 15

Multiple Choice

According to the trade-off between risk and return, which asset would likely have the highest average return on investment over a 20-year period?

• A) a 20-year certificate of deposit issued by a bank
• B) highly rated bonds issued by major corporations
• C) shares of stock in social media companies
• D) government savings bonds

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Definitions:

Mindless Processing

Describes cognitive activities that occur without conscious awareness or effort, often in response to familiar stimuli.

Automatic Pilot

A mode of operation where tasks are performed unconsciously or without active thought, often used metaphorically to describe habitual or rote behavior.

Mishaps

Unfortunate accidents or bad luck incidents that result in damage or injury.

Serious Errors

Significant mistakes or oversights that can have substantial consequences or impacts.