Which One of the Following Statements Is Correct

question 62

Multiple Choice

Which one of the following statements is correct?

• A)The risk-free rate of return has a risk premium of 1.0.
• B)The reward for bearing risk is called the standard deviation.
• C)Risks and expected return are inversely related.
• D)The higher the expected rate of return, the wider the distribution of returns.
• E)Risk premiums are inversely related to the standard deviation of returns.

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Definitions:

Ideology

A system of ideas and ideals, especially one that forms the basis of economic or political theory and policy.

Nationalism

A political ideology and movement that holds that the interests of a particular nation-state are of primary importance, often accompanied by a sense of national consciousness and patriotism.

Colonialism

The practice of gaining full or partial control over another country, occupying it with settlers, and exploiting it economically.

Venustiano Carranza

A leader in the Mexican Revolution who became President of Mexico, serving from 1917 to 1920, and played a key role in drafting the progressive Mexican Constitution of 1917.