Which One of the Following Statements Concerning the Risk-Return-Trade-Off Is

question 5

Multiple Choice

Which one of the following statements concerning the risk-return-trade-off is incorrect?

• A) The risk-return-trade-off is the right balance between risk and return.
• B) Higher risk yields lower potential returns.
• C) The more money a firm borrows, the greater the risks to shareholders.
• D) Failure to invest surplus funds means lower returns.

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Definitions:

Male Child

A young human being of the male sex.

Mother

A female parent of biological, adoptive, or foster children, recognized for her role in child-rearing and emotional support.

Collective Unconscious

A part of the unconscious mind that is shared among beings of the same species, containing innate, universal predispositions.

Personal Unconscious

A term in Jungian psychology referring to a component of the mind containing forgotten or suppressed experiences unique to an individual.