Which of the Following Choices Correctly Describes Therelationship Between Risk

question 190

Multiple Choice

Which of the following choices correctly describes therelationship between risk and return?

• A)Risk and return have no relationship.
• B)Risk and return have a positive relationship.(True Answer )Correct
• C)Zero risk instruments have the highest returns.
• D)The lower the risk is, the higher the return.

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Definitions:

Monopolistically Competitive

Describes a market structure where many firms sell products that are similar but not identical, allowing for significant differentiation and some degree of market power over prices.

Entry Barriers

Obstacles that prevent new competitors from easily entering an industry or area of business.

Four-Firm Concentration Ratio

A metric that represents the market share of the four largest firms in an industry as a percentage of the total industry's output.

Restaurant Industry

A sector of the economy comprising establishments primarily engaged in preparing and serving meals, snacks, and beverages for immediate consumption.