Which Investment Has the Least Amount of Risk

question 22

Multiple Choice

Which investment has the least amount of risk?

• A) Standard deviation = $450, expected return = $4,500
• B) Standard deviation = $600, expected return = $400
• C) Standard deviation = $500, expected return = $800
• D) Standard deviation = $400, expected return = $5,000

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Definitions:

Farm Household

A household that is involved in agricultural activities, often residing on a farm where both living and farming activities take place.

Net Farm Income

The total income from agricultural activities after operating expenses and depreciation are subtracted.

Inferior Good

A type of good whose demand decreases as the income of consumers increases, inverse to normal goods.

Consumer Incomes

The total earnings received by consumers, including wages, salaries, benefits, and other income sources, which affect their purchasing power.