Multiple Choice
The principle of risk-return trade-off means that
A) higher risk investments must earn higher returns.
B) an investor who takes more risk will earn a higher return.
C) a rational investor will only take on higher risk if he expects a higher return.
D) an investor who bought stock in a small corporation five years ago has more money than an investor who bought U.S. Treasury bonds five years ago.
Correct Answer:
Verified
Correct Answer:
Verified
Q25: As of year-end 2012,the great economic recession
Q26: Fortunately,Europe was largely shielded from the economic
Q27: Profits represent money that can be spent,and
Q28: An investor is considering two equally risky
Q29: Cash flows and profits are synonymous; in
Q31: Which of the following goals of the
Q32: Cash and credit management are typically the
Q33: The best form of business entity to
Q34: Its ability to raise capital by selling
Q35: Determining how a firm should raise money