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:

Confidence Level

The probability, expressed as a percent, that a parameter lies within a specified range of values (confidence interval).

Confidence Interval

A range of values, calculated from the sample data, that is likely to include the true population parameter with a specified level of confidence.

Confidence Interval

An estimate expressed as a range that likely contains a population parameter, characterized by a lower and upper bound computed from sample data.

Two Population Means

A statistical comparison between the mean values of two distinct groups or populations.