Measures of risk for an investment include
A) variance of returns and business risk.
B) coefficient of variation of returns and financial risk.
C) business risk and financial risk.
D) variance of returns and coefficient of variation of returns.
E) variance of returns and economic risk.

Question

Quizplus · Accepted Answer

The measures of risk for an investment include both variance of returns and coefficient of variation of returns, as they both provide information on the degree of variability and volatility of returns. Variance measures the average deviation from the mean return, while coefficient of variation measures the standard deviation relative to the mean return. Therefore, option D is the best choice.

Measures of Risk for an Investment Include