What Is the Risk-Return Trade-Off

question 62

Multiple Choice

What is the risk-return trade-off?

• A) A firm will only have returns when it takes on risk.
• B) A firm can either have risk, or it can have returns, but not both.
• C) The balancing of gain with risk.
• D) A risky return is always preferred to a risk-free return.

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Definitions:

Extinction

In psychology, a process by which a previously learned behavior decreases in frequency or stops altogether as a result of non-reinforcement.

Alternative To Punishment

Techniques or strategies used to modify behavior that do not involve penalizing the individual, focusing on positive reinforcement or corrective measures instead.

Organizational Hierarchy

Refers to the arrangement of individuals within a corporation according to power, status, and job function.

Mentors

Experienced and trusted advisors who provide guidance, support, and advice to less experienced individuals, often in a professional context.