Which of the Following Statements Is Correct

question 60

Multiple Choice

Which of the following statements is correct?

• A)A dominant portfolio has the best risk-return relationship as compared to other portfolios.
• B)It is not necessarily true that when an investment achieves a high return that it is risky.
• C)A low standard deviation means that the investment is less likely to achieve high returns, which means that it is more risky.
• D)None of these choices are correct.

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Definitions:

Resources Are Scarce

The fundamental economic problem that the available resources are limited compared to the unlimited wants and needs of people.

Economic Theories

Comprehensive frameworks or models used to explain and predict economic phenomena and guide the analysis of economic issues and policy.

Economic Policy

Strategies and decisions made by the government concerning the economy, including taxation, government spending, and interest rates.

Economic Generalizations

Broad statements that apply to economic behavior or trends, often used to predict future economic outcomes.