The risk involved in owning a financial asset is best thought of as
A)equal to the interest received from ownership of the asset.
B)the chance that the value of the asset will rise or fall relative to what you expect.
C)equal in most instances to the liquidity of the asset.
D)the difference between the return on the asset after taxes and the return on a similar tax-free asset.

Question

Quizplus · Accepted Answer

The risk involved in owning a financial asset refers to the possibility that the asset's value will deviate from your expectations. This can be influenced by various factors such as market trends, interest rates, and company performance. Therefore, option B, which states that risk is associated with the chance of an asset's value rising or falling relative to what you expect, is the most appropriate answer.

The Risk Involved in Owning a Financial Asset Is Best