Which of the following is a TRUE statement?
◦ It is easy to predict the probability and length of a foreign country's recession.
◦ Although economists understand the relationship between risk and return, they have been unable to develop a way to quantify it.
◦ There is a direct relationship between risk and expected return.
◦ Risk and the likelihood of realizing future cash flows from an investment are unrelated.
◦ Riskless investments do not usually earn a positive return.