Which of the Following Is True of Risk

question 33

Multiple Choice

Which of the following is true of risk?

• A) Risk and return are inversely proportionate to each other.
• B) Higher the risk associated with a security the lower is its return.
• C) Risk is a measure of the uncertainty surrounding the return that an investment will earn.
• D) Riskier investments tend to have lower returns as compared to T-bills which are risk free.

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Definitions:

Conflict Management Style

Conflict management style refers to the particular approach or strategy an individual or organization prefers to use when addressing and resolving disputes or disagreements.

Ombudsman

An official appointed to investigate individuals' complaints against maladministration, especially that of public authorities.

Designated Neutral

An assigned individual who remains unbiased and impartial, often used in conflict resolution or decision-making processes.

Third Party

A third party refers to an entity that is involved in a transaction or relationship but is not one of the principal parties, often providing a service or mediation.