Over the Long-Term, the Greater the Volatility in the Returns

question 193

Multiple Choice

Over the long-term, the greater the volatility in the returns on a risky security the:

• A) Lower the average total return.
• B) Greater the average risk premium.
• C) Greater the risk-free rate of return.
• D) Lower the average risk premium.
• E) Lower the average capital gains yield.

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Definitions:

Indus Civilization

An ancient civilization that flourished in the Indus River Valley, now in Pakistan and northwest India, known for its advanced urban planning and architecture.

Mohenjo-daro

An archaeological site in Pakistan, representing one of the major urban settlements of the Indus Valley Civilization, known for its advanced urban planning and architecture.

Nataraja

A depiction of the Hindu god Shiva as the cosmic dancer who performs his divine dance to destroy a weary universe and make preparations for the god Brahma to start the process of creation.

Harihara

A deity in Hinduism that combines aspects of both Vishnu and Shiva, symbolizing their unity and the encompassing nature of the divine.