Which of the Following Statements Is True

question 55

Multiple Choice

Which of the following statements is true?

• A)One advantage of using MPT for loans is that the returns on individual loans are normally distributed, meaning that the upside returns are equal to the downside risks.
• B)One objection to using MPT for loans is that the returns on individual loans are not normally distributed, meaning that most loans have unlimited upside returns and long-tail downside risks.
• C)One advantage of using MPT for loans is that the returns on individual loans are normally distributed, meaning that most loans have unlimited upside returns and unlimited downside risks.
• D)One objection to using MPT for loans is that the returns on individual loans are not normally distributed, meaning that most loans have limited upside returns and long-tail downside risks.

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Definitions:

New York Conspiracy

A term potentially referring to several historical events; without specific context, it's difficult to define, but it may refer to alleged plots or unrest in New York's history.

Colonial Assemblies

Legislative bodies established by colonists in the Americas to represent local interests and challenge the direct control of colonial powers, playing a crucial role in the formation of self-government principles.

Eighteenth-Century

The century from 1701 to 1800, marked by significant developments in politics, science, philosophy, and the arts, particularly noted for the Enlightenment period.

First Great Awakening

A series of Christian revivals that swept through the British American colonies in the mid-18th century, marked by a surge in evangelical fervor and the promotion of a personal, emotional connection with God.