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Which of the Following Is True

Question 2

Multiple Choice

Which of the following is true?


A) Investments with higher risk generally have a higher expected return than risk-free investments.
B) Investments that pay a return over a longer time horizon generally have less risk.
C) Investments with a greater variance in the size of the future payoff generally pay a lower expected return.
D) Risk-free investments are the best benchmark for measuring the risk of all investment strategies.

Correct Answer:

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