Which of the Following Is True

question 3

Multiple Choice

Which of the following is true?

• A) Investments with higher risk generally have a higher expected return than risk-free investments.
• B) Investments that pay a return over a longer time horizon generally have less risk.
• C) Investments with a greater variance in the size of the future payoff generally pay a lower expected return.
• D) Risk-free investments are the best benchmark for measuring the risk of all investment strategies.

---

Definitions:

Parietal Lobe

One of the four major lobes of the cerebral cortex in the brain, involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, involved in voluntary movement, language, and planning.

Midsagittal Cut

A cut or section that divides the body or an organ vertically through the midline, creating equal left and right halves.

Cerebellum

A part of the brain located at the back of the skull, responsible for coordinating voluntary movements and maintaining balance and posture.