Which of the Following Is Not Correct

question 10

Multiple Choice

Which of the following is not correct?

• A)The higher average return on stocks than on bonds comes at the price of higher risk.
• B)Risk-averse persons will take the risks involved in holding stocks if the average return is high enough to compensate for the risk.
• C)Insurance markets reduce risk,but not by diversification.
• D)Risk can be reduced by placing a large number of small bets,rather than a small number of large bets.

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Definitions:

American Bar Association

The American Bar Association is a voluntary bar association of lawyers and law students which is not specific to any jurisdiction in the United States and is involved in setting academic standards for law schools and formulating ethical codes in the legal profession.

Habeas Corpus

A legal principle that allows individuals to challenge unlawful detention, requiring a court to review the legality of the detention.

Federal Writ

A legal order issued by a federal court or a judge.

State Remedies

Legal means available within individual states to redress grievances or disputes, including both administrative and judicial resolutions.