Which One of the Following Is a Correct Statement Concerning

question 44

Multiple Choice

Which one of the following is a correct statement concerning risk premium?

• A) The greater the volatility of returns, the greater the risk premium.
• B) The lower the volatility of returns, the greater the risk premium.
• C) The lower the average rate of return, the greater the risk premium.
• D) The risk premium is not correlated to the average rate of return.
• E) The risk premium is not affected by the volatility of returns.

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Definitions:

Most Frequent Score

It is also known as the mode in statistics, representing the value that appears most frequently in a set of data.

Negative Correlation

A relationship between two variables in which one increases as the other decreases.

Coffee Consumption

The act of drinking coffee and how often it occurs, often studied for its effects on health and behavior.

Hours Slept

The duration of time spent in sleep; an important metric for assessing sleep quality and overall health.