When a Number of Studies Are Completed and the Findings

question 53

Multiple Choice

When a number of studies are completed and the findings repeatedly point to the same conclusions, it is possible to state the relationship between factors as a

• A) theory
• B) principle
• C) scientific explanation
• D) hypothesis

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Definitions:

Expected Return

This is the average amount of profit or loss an investor can expect on an investment, calculated based on historical data or subjective probabilities.

Risky Securities

Financial instruments that carry a higher risk of losing the principle due to volatile market conditions but potentially offer higher returns.

Weighted Average

This is an average in which each quantity to be averaged is assigned a weight, reflecting its importance.

Variances

Statistical measures that represent the degree of spread or dispersion of a set of values around their mean, commonly used to quantify risk in finance.