The Risk Premium for an Investment

question 79

Multiple Choice

The risk premium for an investment:

• A) is negative for U.S. treasury securities.
• B) is a fixed amount added to the risk-free return, regardless of the level of risk.
• C) increases with risk.
• D) is zero (0) for risk-averse investors.

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Definitions:

Receptive Field

The particular region in the field of vision that triggers a response from a neuron or a network of neurons.

Visual Cortex

The region within the occipital lobe of the brain responsible for processing information related to sight.

Sensitivity

A quality or condition of being sensitive; the ability to perceive, respond to, and measure changes in external or internal conditions.

Centre-surround

A term most often used in neuroscience that describes how certain neurons in the visual system are organized to respond differentially to light in the center of their receptive field compared to the surround area.