Consider the Risk of the Following Investments

question 2

Multiple Choice

Consider the risk of the following investments.Choose the answer that lists the investments in order from highest expected return to lowest expected return.

• A)Drilling exploration to discover oil,stock in a secure "blue chip" corporation,government bonds.
• B)Stock in a secure "blue chip" corporation,government bonds,drilling exploration to discover oil.
• C)Government bonds,drilling exploration to discover oil,stock in a secure "blue chip" corporation.
• D)Drilling exploration to discover oil,government bonds,stock in a secure "blue chip" corporation.
• E)Government bonds,stock in a secure "blue chip" corporation,drilling exploration to discover oil.

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Definitions:

Controlled

Describes an experimental condition or variable that is carefully managed or regulated to isolate its effects.

Information Processing

A psychological model that describes how humans perceive, analyze, manipulate, and store information, akin to the functions of a computer.

Attention

Information processing involving the ability to strategically choose among and sort out different stimuli in the environment.

Selective Encoding

The process of focusing attention on relevant information while ignoring irrelevant information during problem solving and decision making.