Author Question: Why would an investor consider risk to be a good thing? A) The higher the risk, the larger the ... (Read 120 times)

frankwu · **on:** Jul 14, 2018

Why would an investor consider risk to be a good thing?
A) The higher the risk, the larger the possible return.
B) The higher the risk, the lower the possible investment.
C) The lower the risk, the larger the possible return.
D) The higher the risk, the higher the rate of investment.
E) The lower the risk, the lower the rate of investment.

Question 2

As the lead analyst at an investment firm, you perceive that you put in more time and effort than your team members. When the year-end bonus was announced, each team member received a 15,000 cash bonus. According to equity theory, what is your likely response?
A) You will work harder.
B) You will ask for a promotion or raise.
C) You will leave things as they are.
D) You will rationalize that your team members deserve the reward.
E) You will recalculate your rewards ratio.