Which of the Following Risk-Return Statements Is True

question 96

Multiple Choice

Which of the following risk-return statements is true?

• A) an investment in a Government of Canada bond is more risky than an investment in a publicly traded company, such as Nortel Networks
• B) rational investors require a lower return for exposing themselves to risk
• C) in order to increase the return expected from any kind of investment, we must increase our exposure to risk
• D) all of the above are true

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Definitions:

Bed Rest

A medical recommendation to restrict activities and remain lying down for most of the day to promote healing or recovery.

Dyspnea

Difficulty or discomfort in breathing, often described as shortness of breath.

Hemorrhage

Excessive bleeding or blood loss, either internally or externally.

Low-molecular-weight Heparin

A medication used to prevent and treat blood clots, characterized by its lower molecular weight compared to standard heparin, resulting in more predictable effects.