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:

Incessant Lying

The compulsive act of telling falsehoods continuously, often without clear motive or benefit.

Lack of Conscience

Describes a condition or personality trait where an individual shows no feelings of guilt or remorse for actions that can harm others, often associated with antisocial personality disorder.

Borderline Personality Disorder

A mental health disorder noted for a pervasive pattern of instability in interpersonal relationships, self-image, and emotions.

Emotional Roller Coaster

An intense or turbulent set of emotional experiences that are often rapidly and unpredictably changing.