Risk-Free Investments Have Rates of Return

question 82

Multiple Choice

Risk-free investments have rates of return:

• A) equal to zero.
• B) with a standard deviation equal to zero.
• C) that are uncertain, but have a certain time horizon.
• D) that exhibit a large spread of potential payoffs.

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Definitions:

Physiological Needs

Fundamental requirements for human survival, such as food, water, warmth, and rest.

Equity Theories

Theories focused on understanding how individuals perceive fairness in distribution of resources and rewards.

Social Exchange

A theory suggesting that social behavior is the result of an exchange process, aiming to maximize benefits and minimize costs.

Organizations

Structured groups of people who work together toward shared goals using resources and systems.