Which of the Following Statements About the Risk-Free Asset Is

question 9

Multiple Choice

Which of the following statements about the risk-free asset is correct?

• A) The risk-free asset is defined as an asset for which there is uncertainty regarding the expected rate of return.
• B)The standard deviation of return for the risk-free asset is equal to zero.
• C) The standard deviation of return for the risk-free asset cannot be zero, since division by zero is undefined.
• D) Choices a and b.
• E) Choices a and c.

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Definitions:

Legitimate Opportunities

Refers to the legal and socially accepted avenues available to individuals to achieve success, often discussed in the context of sociological theories of crime and inequality.

Control Theory

Holds that the rewards of deviance and crime are ample. Therefore, nearly everyone would engage in deviance and crime if they could get away with it. The degree to which people are prevented from violating norms and laws accounts for variations in the level of deviance and crime.

Healthy Social Change

Positive transformation within society that leads to improvements in health, well-being, equity, and social justice.

Durkheim

Refers to Émile Durkheim, a French sociologist, who is a founding figure in the field of sociology and is best known for his theory on social facts and his studies on the division of labor, suicide, and religion.