The Rate of Return of Certain Investments Increases as the Risk

question 88

Multiple Choice

The rate of return of certain investments increases as the risk factor of the investment increases. An investment with a risk factor of 2 has a rate of return of 5.0%. An investment with a risk factor of 24 has a rate of return of
12) 0%. What is the average rate of return per unit of risk?

• A) 3.14% per unit risk
• B) 1.90% per unit risk
• C) 0.53% per unit risk
• D) 0.32% per unit risk

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Definitions:

Progression Of Withdrawal

A situation where an individual gradually disengages or removes themselves from a particular role or activity.

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A period of reduced performance or negative feelings following a temporary phase of enthusiasm or a high-positive state, often without the context of alcohol consumption.

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The level of contentment or happiness that an individual derives from their job, influenced by various factors like work environment, salary, and the nature of the work itself.