Which of the Following Is True

question 8

Multiple Choice

Which of the following is true?

• A)Investments with higher risk generally pay a higher return than risk-free investments
• B)Investments that pay a return over a longer time horizon generally have less risk
• C)Investments with a greater variance in the size of the future payoff generally pay a lower expected return
• D)Risk-free investments are the best benchmark for measuring the risk of all investment strategies

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Definitions:

Boolean Operators

Logical connectors (AND, OR, NOT) used in search engines and databases to refine and combine search terms.

Relevance

The quality of being closely connected or appropriate to the matter at hand.

Quality

An attribute or characteristic that determines the excellence, condition, or value of something, often measured against standards or requirements.

Citation

A reference or mention of a source, used to give credit to the original author or to support claims in a text.