Which of the Following Statements Is True

question 25

Multiple Choice

Which of the following statements is true?

• A)Assets with higher levels of market risk will sell for higher prices.
• B)Assets with higher levels of market risk will have lower expected rates of return.
• C)Assets with lower levels of market risk will have higher expected rates of return.
• D)Assets with lower levels of market risk will sell for higher prices.

---

Definitions:

Profitability

The ability of a business to earn a profit, which occurs when the revenues generated exceed the costs and expenses incurred in operating the business.

Financial Indicators

Financial indicators are quantitative measures that provide insights into the financial health, performance, and stability of an organization or business.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and disclose the results in a transparent manner.

Regulatory Compliance

Adhering to laws, regulations, guidelines, and specifications relevant to business operations or activities.