A Risk-Return Trade-Off Is the Idea That

question 11

Multiple Choice

A risk-return trade-off is the idea that:

• A)there is always a risk to selling weapons to other states.
• B)states can get the best deal by threatening all-out war with another state.
• C)states can minimize the chance of war by exchanging diplomatic missions.
• D)states can reduce the risk of war during a crisis by returning diplomatic messages quickly.
• E)states want to minimize the chance of war but also get the best deals they can.

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Definitions:

Trust Fund

A legal arrangement through which assets are held by a trustee for the benefit of another party, often used for estate planning or to manage wealth.

Scholarships

Financial aid provided to students based on academic or other achievements to support their education, and does not have to be repaid.

Rate of Return

The percentage of increase or decrease in the value of an investment over a given period, adjusted for any payouts.

Interest Income

The income earned on funds deposited or invested, including interest payments from savings accounts, certificates of deposit, bonds, and loans.