One Fundamental Concept in fiNancial Economics Is That an Investment's

question 14

Multiple Choice

One fundamental concept in financial economics is that an investment's rate of return is

• A) positively related to the price paid for it.
• B) inversely related to the price paid for it.
• C) inversely related to the riskiness of the investment.
• D) inversely related to the maturity of the investment.

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Definitions:

Edward Hall

An American anthropologist known for his work in the field of intercultural communication, including the concepts of high-context and low-context cultures.

Polychronic

Refers to a cultural attitude towards time management that values multitasking and flexible scheduling.

Uncertainty Avoidance Index

A measure used in cross-cultural studies to describe the extent to which people in a culture feel threatened by uncertain or unknown situations.

Power-Distance Index

A measure in cross-cultural psychology and sociology that reflects the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.