Which of the Following Statements Regarding the Risk-Return Relationship Is

question 11

Multiple Choice

Which of the following statements regarding the risk-return relationship is most accurate?

• A)Lower credit scores are associated with lower APRs.
• B)Higher credit scores are associated with lower APRs.
• C)Longer loan length is associated with lower APRs.
• D)Shorter loan length is associated with higher APRs.
• E)Both B and D are correct.

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Definitions:

Population

The total set of observations or data that can be collected or referenced in a statistical analysis.

Normal Probability Distribution

A symmetric, bell-shaped distribution that is characterized by its mean and standard deviation, representing the distribution of many types of data.

Rule of Thumb

A broadly applicable guideline or an easy generalization that is not necessarily very accurate but useful for making approximate judgments.

Cluster Sampling

A sampling method where the population is divided into clusters, and a random sample of these clusters is selected for study.