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Which ONE of the following statements is correct about the basic concept of risk and return? A. Rational investors are averse to fluctuations in the

Which ONE of the following statements is correct about the basic concept of risk and return?

A.

Rational investors are averse to fluctuations in the value of their investments.

B.

None of the statements is correct.

C.

Investments with high returns are expected to have an inverse relationship with the variability of their investment values.

D.

Investors demand a higher return for investments that have larger fluctuations in values because they are risk seeking.

E.

On average, shares have delivered lower returns than bonds in the long run.

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