Which One of the Following Statements Is Correct

question 88

Multiple Choice

Which one of the following statements is correct?

• A)The greater the volatility of returns, the greater the risk premium.
• B)The lower the volatility of returns, the greater the risk premium.
• C)The lower the average return, the greater the risk premium.
• D)The risk premium is unrelated to the average rate of return.
• E)The risk premium is not affected by the volatility of returns.

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Definitions:

Reptiles

Cold-blooded, vertebrate animals that lay eggs and have skin covered with scales or bony plates.

Metabolic Heat

The heat produced by an organism as a result of its metabolic processes, which helps in maintaining its body temperature.

Homo Sapiens

The species to which all modern human beings belong and the only extant member of the genus Homo.

Shorter Body Form

A physical adaptation where the body shape is more compact, often as an evolutionary response to environmental factors.