Which Investment Has the Least Amount of Risk

question 22

Multiple Choice

Which investment has the least amount of risk?

• A) Standard deviation = $450, expected return = $4,500
• B) Standard deviation = $600, expected return = $400
• C) Standard deviation = $500, expected return = $800
• D) Standard deviation = $400, expected return = $5,000

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Definitions:

Basis of the Bargain

Refers to the fundamental expectations or promises that constitute the foundation for the agreement between contracting parties.

Express Warranty

A clear, affirmative promise or guarantee by a seller about the quality or functionality of a product or service.

Basis of the Bargain

A term from contract law referring to the essential facts and terms agreed upon by the parties, influencing their decision to enter into a contract.

Negligent Design

A legal claim that occurs when a product is poorly designed, leading to injury or damage due to the manufacturer's failure to foresee risks.