Which of the Following Is True About Risk and Return

question 234

Multiple Choice

Which of the following is true about risk and return?

• A) Riskier assets will, on average, earn lower returns.
• B) The reward for bearing risk is known as the standard deviation.
• C) Based on historical data, there is no reward for bearing risk.
• D) An increase in the risk of an investment will result in a decreased risk premium.
• E) In general, the higher the risk the higher the expected return.

Grasp the concept of creative problem solving in sales and its impact on customer satisfaction.

Famelize with the steps involved in approaching and closing a sale.

Understand the significance of strategic goals and relationships with customers.

Understand the purpose and components of an effective sales call.

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Definitions:

Tax Rates

The segment of earnings an individual or corporate entity owes to the government in taxes.

Interest Tax Shield

The saving in taxes due to deductible interest expenses, which reduces taxable income and ultimately decreases the tax liability.

Financial Risk

Financial Risk refers to the possibility of losing money on financial investments or transactions due to market fluctuations, credit issues, or other factors.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements.