The _________ of an Investment's Return Is a Measure of How

question 3

Multiple Choice

The _________ of an investment's return is a measure of how much the possible returns vary above and below the expected return across states of the world.Among projects with the same expected return,those with higher variance are ___________.

• A) Variance; less risky
• B) The expected value; less risky
• C) Expected value; more risky
• D) Variance; more risky

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Definitions:

Executory Contracts

Contracts under which both parties to the agreement have unfulfilled obligations that remain to be performed.

Repudiated

Refused to accept or be associated with; to reject a proposal, idea, or relationship, often legally or formally.

Noncompete Agreement

A legal contract preventing one party from entering into or starting a similar profession or trade in competition against another party.

Bargained-For Exchange

In reference to agreements, when a promise is made in exchange for another promise, in exchange for an act, or in exchange for a forbearance to act.