Which of the Following Statements About Risks Is True

question 2

Multiple Choice

Which of the following statements about risks is true?

• A) Investing in a utility company that supplies power to customers, who have few alternative sources of power, can be very risky.
• B) Investors take up risks every time when they are not sure if their investments will be a gain or a loss.
• C) Investing in a stable firm is generally considered very risky even if it has a long history of profitability.
• D) Investors face vey less risk when they put their money into start-up companies that try to launch products based on new technologies.

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Definitions:

Marginal Product

The increase in output that results from using one more unit of a particular input, keeping other inputs constant.

Seminiferous Tubules

Narrow, coiled tubules within the testes where spermatogenesis, the process of sperm production, occurs.

Vas Deferens

A duct that carries sperm from the testicle to the urethra.

Rete Testis

A network of tubules located in the testes that transport sperm from the seminiferous tubules to the efferent ducts.