Which of the Following Statements Best Describes the Relationship Between

question 3

Multiple Choice

Which of the following statements best describes the relationship between risk and the average expected return of investments?

• A) Less risky assets will have similar average expected rates of return to more risky assets.
• B) Less risky assets will have higher average expected rates of return than more risky assets.
• C) More risky assets will have higher average expected rates of return than less risky assets.
• D) More risky assets will have lower average expected rates of return than less risky assets.

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Definitions:

Personal Assessments

Evaluations or analyses of an individual's characteristics, skills, or performance.

Direct Observation

A research method where behaviors or events are recorded as they naturally occur, without interference or manipulation by the observer.

Internal Locus of Control

The belief that one's actions and behaviors are responsible for the outcomes in their life, rather than external forces.

External Locus

A psychological concept where individuals believe that their lives are controlled by external forces rather than their own actions.