Which of the Following Is Not a Correct Statement Regarding

question 117

Multiple Choice

Which of the following is not a correct statement regarding business risk and financial instruments?

• A) Business risks associated with financial instruments will vary depending of the aggressiveness of a company's investing activity.
• B) Business risk will be higher for companies investing in less liquid securities.
• C) Financial services firms are exposed to very little risk with their financial instruments.
• D) Business risk for a company will be higher when investments represent a greater proportion of total assets.

---

Definitions:

Thorndike

Edward Thorndike was an American psychologist who formulated the Law of Effect, which posits that behaviors followed by satisfying outcomes are likely to recur.

Successful Responses

are behaviors or actions that effectively achieve the desired outcome or solve a particular problem in a given context.

Preparedness

An evolutionary concept that suggests humans and animals are inherently inclined to form certain associations or reactions to stimuli which enhance survival and reproduction.

Signal Relations

The association or relationship between signals, typically in the context of communication or signal processing, where the analysis of how different signals relate or are connected is crucial.