Which of the Following Is a True Statement

question 62

Multiple Choice

Which of the following is a true statement?

• A) To calculate the expected risk premium one needs the expected return on the risky asset and the return on a risk-free asset.
• B) The risk premium is the difference between the return on a risky asset and the return on the market portfolio.
• C) The expected return on an asset is equal to the sum of the possible returns divided by their probabilities.
• D) Comparison of two different risky assets cannot be simplified by calculating the expected return for each.
• E) Expected returns depend on the states of the economy but not the associated probabilities.

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Definitions:

Behavioural Genetics

The field of study that examines the role of genetic and environmental influences on animal (including human) behavior.

Family Environment

The social and emotional atmosphere in which a person is raised, including family dynamics, relationships, and cultural practices.

Behavioural Genetics

The academic discipline that investigates the impact of genetics and environmental factors on behavioral patterns.

Biological Perspective

An approach in psychology that examines behavioral and mental processes through the lens of biological processes, including genetics, neuroanatomy, and physiology.