The Idea That the Punishment Should Be Tailored to the Risk

question 32

Multiple Choice

The idea that the punishment should be tailored to the risk level of the individual, not the crime, is most representative of the ______ school of criminology.

• A)Classical
• B)German
• C)Italian
• D)Russian

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Definitions:

Market Risk Premium

The additional return an investor expects from holding a risky market portfolio instead of risk-free assets, compensating for the risk of fluctuating market conditions.

Expected Return

The projected average return of an investment, taking into account all possible outcomes and their likelihoods.

Beta

A measure of a stock's volatility in relation to the overall market, used in the capital asset pricing model to determine risk.

Risk-Free Rate

The theoretical rate of return of an investment with no risk of financial loss, often represented by the yield on government bonds.