Post Utme Elizade University 2023 Commerce Question 17

Practice objective / multiple choice question 17 from the 2023 Post Utme Elizade University Commerce examination.

Post Utme Elizade University 2023 Commerce Objective / Multiple Choice
Question 17 POST_UTME_ELIZADE_UNIVERSITY • 2023 • COMMERCE • objective

A company is considering two different investment projects. Project A has a higher expected return but also a higher level of risk. Project B has a lower expected return but also a lower level of risk. Which of the following is a correct statement about the risk-return tradeoff?

Answer Options

A. Higher expected returns are always associated with higher levels of risk.
B. Lower expected returns are always associated with lower levels of risk.
Correct Answer C. There is a direct tradeoff between expected returns and risk.
D. There is no tradeoff between expected returns and risk.
Correct Answer
C
Correct Option:
There is a direct tradeoff between expected returns and risk.

About This Question

This is Post Utme Elizade University 2023 Commerce Question 17. It is one of the objective questions from the 2023 Post Utme Elizade University Commerce examination.

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