Which of the Statements Below Is NOT Correct

question 57

Multiple Choice

Which of the statements below is NOT correct?

• A)If two investments have the same expected return,the investment with the lower risk is preferred.
• B)If two investments have the same expected return,the investment with the greater risk is preferred.
• C)If two investments have the same expected risk,the investment with the higher expected return is preferred.
• D)If one investment has a higher expected return and a greater level of risk than another,it is not clear which investment is the preferred choice.

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Definitions:

Trade Deficits

The economic condition that occurs when a country imports more goods and services than it exports, resulting in a negative balance of trade.

Smoot-Hawley Tariff

A U.S. law enacted in 1930, which raised tariffs on over 20,000 imported goods to record levels, leading to a significant decrease in international trade.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, starting in the United States following the stock market crash of 1929.

Revenue-Raising

Activities or policies implemented to increase the financial income of an organization or government.