Which Statement Correctly Describes the Relationship Between Risk and Return

question 9

Multiple Choice

Which statement correctly describes the relationship between risk and return?

• A) Risk and return have no relationship.
• B) Risk and return have a positive relationship.
• C) Zero risk instruments have the highest returns.
• D) The lower the risk is, the higher the return is.

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Definitions:

Psychoanalytic Theory

A comprehensive theory of personality development, psychopathology, and human behavior, emphasizing unconscious motives and conflicts, originating from Sigmund Freud’s work.

Immature Defense Mechanisms

Psychological strategies used unconsciously to protect oneself from anxiety and to manage emotional conflict and stress.

Oral Stage

A stage in Freud's psychosexual development theory, occurring in the first year of life, where pleasure is centered on oral activities such as feeding and sucking.

Reaction Formation

A defense mechanism where an individual acts in a manner opposite to their actual feelings or impulses.