Which Investment Has the Least Amount of Risk

question 22

Multiple Choice

Which investment has the least amount of risk?

• A) Standard deviation = $450, expected return = $4,500
• B) Standard deviation = $600, expected return = $400
• C) Standard deviation = $500, expected return = $800
• D) Standard deviation = $400, expected return = $5,000

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Definitions:

Bundled Sales

A marketing strategy where multiple products or services are packaged together and sold at a single price.

Lump-sum Contract

A type of contract in which all work is agreed to be completed for a single, fixed price, regardless of the actual costs incurred.

Recognized Up Front

The practice of recording or acknowledging revenue or expenses immediately at the time of a transaction.

Franchisor

A business entity that grants the license to a third party for the conducting of a business under the franchisor's marks.