The Relationship Between Risk and Return Is Positive Because

question 6

Multiple Choice

The relationship between risk and return is positive because

• A) the longer the term of the investment, the more exposed it is to negative inflation effects.
• B) investors need to be compensated with additional return on investment to bear additional risk.
• C) not every investment has risk, so there is really no distinct relationship.
• D) Both A and B are correct.

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Definitions:

Job Tension

The stress and strain experienced by individuals due to demands and pressures of their work environment.

Scapegoating

The practice of unfairly blaming an individual or group for problems or failures, often to deflect responsibility or criticism from oneself.

Cultural Blocks

Psychological barriers or social norms that inhibit creativity or prevent individuals from thinking innovatively within a cultural context.

Creative Decision Making

The process of generating innovative solutions during the decision-making process to solve problems or seize opportunities.