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Which of the Following Describes the Risk-Return Principle

Question 5

Multiple Choice

Which of the following describes the risk-return principle?


A) In most financial markets, the greater the risk, the lower the rate of return.
B) In a financial market, the only way to get consistently higher returns over the long run is to take more risks.
C) In a stock market, the higher the price of the stock, the greater the risk incurred by the investor.
D) An investment or loan has less risk if it is likely to lose value at the same time your other investments or loans do.

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