Proper Risk-Return Management Means That

question 39

Multiple Choice

Proper risk-return management means that

• A) the firm should take as few risks as possible.
• B) the firm must determine an appropriate trade-off between risk and return.
• C) the firm should earn the highest return possible.
• D) the firm should value future profits more highly than current profits.

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Definitions:

Incorporation Theory

A principle in United States law that ensures states cannot enact laws that take away the constitutional rights of American citizens that are enshrined in the Bill of Rights.

Bill of Rights

The first ten amendments to the United States Constitution, guaranteeing specific freedoms and protections to American citizens.

Incorporation Doctrine

The legal concept that the Bill of Rights applies to state governments as well as the federal government through the Fourteenth Amendment's Due Process Clause.

Gitlow v. New York

A landmark Supreme Court case in 1925 that ruled the Fourteenth Amendment to the U.S. Constitution extended the First Amendment's provisions protecting free speech and free press to the states.