In a Well-Functioning Financial Market,the Only Way to Get Consistently

question 15

Multiple Choice

In a well-functioning financial market,the only way to get consistently higher returns over the long run is to take more risks.This is known as the

• A) risk-return principle.
• B) diversification principle.
• C) fixed income principle.
• D) price appreciation principle.

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Definitions:

Administrative Adjudication

The process by which a governmental or administrative agency resolves disputes or makes decisions in its field of competence, often through hearings.

Administrative State

The body of government agencies and officials that administer policies, regulations, and laws enacted by legislative bodies.

Independent Agencies

Bodies established by the federal government that operate outside of the federal executive departments, having regulatory or oversight powers.

Public Corporations

Organizations owned by the government that operate in the public interest, often providing essential services or goods.