All of the following statements about risk are correct EXCEPT ____.
A) risk can be defined as the chance for financial loss
B) the term risk is used interchangeably with uncertainty
C) risk refers to the certainty of returns associated with a given asset
D) the more certain the return from an asset, the less variability and therefore less risk

Question

Quizplus · Accepted Answer

Risk refers to the uncertainty or variability of returns associated with a given asset, not the certainty of returns. Therefore, statement C is incorrect. Statements A, B, and D are all correct.

All of the Following Statements About Risk Are Correct EXCEPT