Which of the Following Statements Is True

question 29

Multiple Choice

Which of the following statements is true?

• A) While finance teaches that investments with higher risk should have higher returns there is no historical evidence in the capital markets to suggest this relationship exists.
• B) Finance teaches that investments with higher risk should have higher returns and historical evidence in the capital markets suggests this relationship exists.
• C) When individuals decide how to invest their money they must weigh the expected benefits (returns)against the costs of additional risk.
• D) Both (a)and (c)are true.
• E) Both (b)and (c)are true.

---

Definitions:

Product Portfolio

The collection of all products or services offered by a company, considered especially in terms of their relative competitive positions and market appeal.

New-product Protocol

A guideline or plan that outlines the process of developing and launching a new product, including stages from initial idea generation to market launch.

Environmental Scanning

The ongoing process of collecting information about external factors that might affect an organization's future plans and operations.

SWOT Analysis

A strategic planning tool that evaluates the strengths, weaknesses, opportunities, and threats related to a project or business venture.