Which of the Following Statements About Risk Is False

question 6

Multiple Choice

Which of the following statements about risk is false?

• A) Risk requires the possibility of at least one outcome less favorable than the expected value.
• B) Risk requires the possibility of more than one outcome.
• C) Risk is one of the determinants of the required return.
• D) Risk aversion generally is assumed in finance to be a characteristic of the "marginal investor."
• E) All of the above statements are true.

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Definitions:

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A mathematical game or puzzle consisting of three pegs and a number of disks of different sizes which can slide onto any peg, with the objective being to move the entire stack to another peg, following certain rules.

Subgoals

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Concrete Operational Stage

A phase in Piaget's theory of cognitive development where children gain the ability to think logically about concrete events.