Which of the Following Statements Best Describes the Relationship Between

question 3

Multiple Choice

Which of the following statements best describes the relationship between risk and the average expected return of investments?

• A) Less risky assets will have similar average expected rates of return to more risky assets.
• B) Less risky assets will have higher average expected rates of return than more risky assets.
• C) More risky assets will have higher average expected rates of return than less risky assets.
• D) More risky assets will have lower average expected rates of return than less risky assets.

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Definitions:

Positive

Characterized by or denoting an affirmation, addition, or increase, often associated with beneficial outcomes.

Cold Drinks

Beverages that are served chilled, commonly refreshing and enjoyed in hot conditions.

Temperature

A physical quantity that expresses the subjective perceptions of hot and cold, measured by a thermometer in units like Celsius, Fahrenheit, or Kelvin.

Temperature

A measure of the average kinetic energy of the particles in an object or system, indicating how hot or cold the object is.