Which of the Following Is True of Risk-Return Trade Off

question 152

Multiple Choice

Which of the following is true of risk-return trade off?

• A) Risk can be measured on the basis of variability of return.
• B) Risk and return are inversely proportional to each other.
• C) T-bills are more riskier than equity due to imbalances in government policies.
• D) Riskier investments tend to have lower returns.

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Definitions:

Heritable

Pertaining to traits or characteristics that can be passed from parents to their offspring through genes.

Genetic Variations

Differences in DNA sequences among individuals, which contribute to the diversity of organisms' characteristics.

Specific Population

A distinct group of individuals, often identified by shared characteristics or conditions, used for the purpose of statistical analysis or research.

Canalized Characteristic

A trait that is genetically determined and less influenced by environmental factors, showing little variation among individuals.