Which One of the Following Is a Correct Statement Concerning

question 54

Multiple Choice

Which one of the following is a correct statement concerning the excess return?

• A)The greater the volatility of returns,the greater the expected excess return.
• B)The lower the volatility of returns,the greater the expected excess return.
• C)The lower the average rate of return,the greater the excess return.
• D)The excess return is not correlated to the average rate of return.
• E)The excess return is not affected by the volatility 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.

Public Tolerance

Refers to the degree to which a society or community is willing to accept or endure opinions, behaviors, or practices that differ from those of the majority.

Civil Liberties

Fundamental rights and freedoms protected by law from governmental interference.

Unpopular Ideas

Concepts or opinions that are not widely accepted or that attract criticism and disapproval from the general public or specific groups.