Principle 8,Risk and Return Go Hand in Hand,tells Us That

question 134

Multiple Choice

Principle 8,Risk and Return go hand in hand,tells us that you ________ as the length of the investment horizon ________.

• A)can afford to take on additional risk;increases
• B)can afford to take on additional risk;decreases
• C)cannot afford not to take on additional risk;shortens
• D)cannot afford to take on additional risk;increases

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Definitions:

Dependence

A condition of relying on someone or something else for support, sustenance, or assurance.

Instincts

Innate, biological urges or behaviors that are hardwired into an organism, driving necessary actions like survival, reproduction, and social interactions.

Life and Death

Fundamental concepts concerning the beginning and end of biological existence, often explored in psychology and philosophy.

Pleasure and Desire

Fundamental aspects of human psychology that drive behaviors, with pleasure being a state of gratification and desire the longing for certain experiences.