Which One of the Following Statements Is Correct

question 62

Multiple Choice

Which one of the following statements is correct?

• A)The risk-free rate of return has a risk premium of 1.0.
• B)The reward for bearing risk is called the standard deviation.
• C)Risks and expected return are inversely related.
• D)The higher the expected rate of return, the wider the distribution of returns.
• E)Risk premiums are inversely related to the standard deviation of returns.

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Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time, allowing organisms to focus on changes in their environment.

Subliminal Stimulation

A sensory or psychological input that is below an individual's threshold for conscious perception, yet can influence thoughts or actions.

Sensory Receptors

Sensory receptors are specialized cells or nerve endings that respond to changes in the environment by sending signals to the central nervous system, enabling perception.

Bottom-up Processing

An approach to information processing that starts with the sensory input and builds up to the final representation in the brain.