If the Variability of the Returns on Large-Company Stocks Were

question 70

Multiple Choice

If the variability of the returns on large-company stocks were to increase over the long-term,you would expect which of the following to occur as a result?
I.decrease in the average rate of return
II.increase in the risk premium
III.increase in the 68 percent probability range of the frequency distribution of returns
IV.decrease in the standard deviation

• A)I only
• B)IV only
• C)II and III only
• D)I and III only
• E)II and IV only

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Definitions:

Role Perceptions

Individuals' views and understandings of their responsibilities, duties, and behaviors expected in a particular social or work setting.

Motivation

The processes that account for an individual's intensity, direction, and persistence of effort towards attaining a goal.

Moral Intensity

The degree of pressure felt to make ethical or unethical decisions, influenced by the perceived magnitude of consequences and social consensus surrounding an action.

Utilitarianism

A moral philosophy that evaluates actions based on their outcomes, specifically aiming to maximize overall happiness and minimize suffering.