Which of the Following Is TRUE of Risk

question 206

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:

Presidential Election of 1876

A highly contested election where Rutherford B. Hayes was declared the winner over Samuel J. Tilden after a compromise that effectively ended Reconstruction by removing federal troops from the South.

Reconstruction

The period following the Civil War in the United States, focused on rebuilding the country and integrating formerly enslaved people into society.

Democratic Presidents

Leaders of the United States who are members of the Democratic Party, one of the two major political parties in the country.

Enslaved Americans

People forced into servitude without freedom, predominantly Africans and African Americans, in the United States prior to the abolition of slavery.