Which of the Following Statements Regarding Risk in Investing Is

question 16

Multiple Choice

Which of the following statements regarding risk in investing is most correct?

• A)Avoiding risk is the best strategy to accumulate wealth.
• B)It is most important to avoid risk during the early years,up to age 54.
• C)It is hard to achieve a positive real return by avoiding risk all together.
• D)Trying to avoid risk is an exercise in futility.

---

Definitions:

Performance

The act of performing a task or function, often measured against standards such as speed, accuracy, or efficiency.

Rewards

Benefits or positive outcomes given to individuals as recognition for their performance or behavior.

Inducements

Incentives or rewards offered to motivate certain behaviors or decisions.

Goal Difficulty

The degree of difficulty and the amount of effort needed to reach a goal.