Which of the Following Statements About Risk Is False

question 6

Multiple Choice

Which of the following statements about risk is false?

• A) Risk requires the possibility of at least one outcome less favorable than the expected value.
• B) Risk requires the possibility of more than one outcome.
• C) Risk is one of the determinants of the required return.
• D) Risk aversion generally is assumed in finance to be a characteristic of the "marginal investor."
• E) All of the above statements are true.

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Definitions:

Iron

A mineral essential for the body, primarily involved in the creation of red blood cells and the transportation of oxygen in the blood.

Zinc

An essential mineral important for immune function, wound healing, DNA synthesis, and cell division.

Alfredo Sauce

A rich and creamy sauce made with butter, heavy cream, and Parmesan cheese, often served over pasta.

Fat

A macronutrient important for energy storage, hormone production, and insulation, but excessive intake can lead to health issues.