Which of the Following Statements Is Correct

question 83

Multiple Choice

Which of the following statements is correct?

• A) The greater the risk associated with an investment, the lower the return investors expect from it.
• B) When choosing between two investments that have the same level of risk, investors prefer the investment with the higher return.
• C) If two investments have the same expected return, investors prefer the riskiest alternative.
• D) When choosing between two investments that have the same level of risk, investors prefer the investment with the lower return.

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Definitions:

Majority Vote

A decision-making process that is reached when more than half of the members in a voting body vote in favor of a proposal.

Congress

The legislative branch of the United States federal government, composed of the House of Representatives and the Senate, responsible for making national laws.

Supremacy Clause

Article VI, Paragraph 2, of the U.S. Constitution, which states that the Constitution and all laws and treaties of the United States constitute the supreme law of the land. Thus, any state or local law that directly conflicts with the U.S. Constitution or federal laws or treaties is void.

Article VI

Refers to the Supremacy Clause within the United States Constitution, which establishes that the Constitution and federal laws are the supreme law of the land.