There Is a ____ Relationship Between the Risk of a Security

question 54

Multiple Choice

There is a ____ relationship between the risk of a security and the expected return from investing in the security.

• A) positive
• B) negative
• C) indeterminable
• D) none of the above

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Definitions:

Fixed Cost

Fixed cost refers to expenses that do not change regardless of the business's level of output or sales, such as rent or salaries.

Long-Run Supply Curve

A curve that shows the relationship between market prices and quantities supplied over a period when all production inputs are variable.

Mad Cow Disease

A neurological disorder in cattle that can be transmitted to humans, causing a fatal brain disease.

Economic Profits

Profits exceeding the opportunity costs of all resources used by a firm.