As the Risk of a Stock Investment Increases

question 44

Multiple Choice

As the risk of a stock investment increases,

• A) return will increase.
• B) required rate of return will increase.
• C) return will decrease.
• D) required rate of return will decrease.

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Definitions:

Comparative Process

Evaluating two or more objects, individuals, or situations against each other to understand their similarities or differences.

Categorical Thinking

A cognitive process of organizing information into groups or categories based on shared characteristics.

Repetitive Features

Elements or characteristics that occur again and again within a product, process, or environment.

Intense

Having or showing strong feelings or opinions; extremely earnest or serious.