Which One of the Following Is a Correct Statement Concerning

question 44

Multiple Choice

Which one of the following is a correct statement concerning risk premium?

• A) The greater the volatility of returns, the greater the risk premium.
• B) The lower the volatility of returns, the greater the risk premium.
• C) The lower the average rate of return, the greater the risk premium.
• D) The risk premium is not correlated to the average rate of return.
• E) The risk premium is not affected by the volatility of returns.

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Definitions:

Lower Socioeconomic

Refers to individuals or groups who are in a lower position in terms of economic, social, and educational resources.

Educational Aspirations

Goals or ambitions related to achieving a certain level of education.

Career Aspirations

The long-term career goals or objectives an individual aims to achieve.

Showing Deference

Demonstrating respect or submission to someone by yielding to their knowledge or authority.