Rational Investors Would Consider an Investment in a Risky Business

question 81

Multiple Choice

Rational investors would consider an investment in a risky business venture only if they feel the expected return is high enough to justify the

• A) greater risk.
• B) higher cost.
• C) longer useful life.
• D) more complex designs.

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Definitions:

Alger Hiss

A former State Department official who was convicted of perjury in the late 1940s, stemming from allegations of spying for the Soviet Union, leading to a highly publicized trial and contributing to the Red Scare.

White Citizens’ Councils

Organizations in the Southern United States during the mid-20th century that promoted racial segregation and opposed civil rights for African Americans using economic pressures and social intimidation.

Ku Klux Klan

A secretive and violent organization in the United States that advocates white supremacy, white nationalism, and anti-immigration, historically known for terrorizing African Americans.

Civil Rights Activists

Individuals who actively work or campaign for the rights of citizens to political and social freedom and equality.