Which of the Statements Below Is NOT Correct

question 57

Multiple Choice

Which of the statements below is NOT correct?

• A)If two investments have the same expected return,the investment with the lower risk is preferred.
• B)If two investments have the same expected return,the investment with the greater risk is preferred.
• C)If two investments have the same expected risk,the investment with the higher expected return is preferred.
• D)If one investment has a higher expected return and a greater level of risk than another,it is not clear which investment is the preferred choice.

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Definitions:

Closely Held Corporations

Corporations in which there are relatively few shareholders; referred to as non-distributing corporations in some jurisdictions.

Annual Return

A yearly statement filed by businesses detailing important company information such as capital, membership, and accounts.

Pre-emptive Rights

Pre-emptive rights, in corporate law, are rights given to existing shareholders to purchase additional shares before they are offered to new potential shareholders, usually to maintain their proportional ownership in the company.

Proportionate Share

Refers to an individual's or entity's portion or share of a total amount, calculated based on specific criteria or ratios.