The Principle of Risk-Return Trade-Off Means That

question 30

Multiple Choice

The principle of risk-return trade-off means that

• A) higher risk investments must earn higher returns.
• B) an investor who takes more risk will earn a higher return.
• C) a rational investor will only take on higher risk if he expects a higher return.
• D) an investor who bought stock in a small corporation five years ago has more money than an investor who bought U.S. Treasury bonds five years ago.

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Definitions:

LGBT People

Individuals who identify as lesbian, gay, bisexual, or transgender, encompassing a range of sexual orientations and gender identities.

Heterosexuality

The sexual attraction to, or sexual relations with, persons of the opposite sex.

Early Victorian

Referring to the early period of Queen Victoria's reign over Britain (1837-1901), characterized by rapid industrialization, social changes, and cultural developments.

Human Body

The physical structure of a person, including the bones, muscles, and organs.