Which of the following statements regarding risk of assets is correct?
A) Every decade since 1950 has seen a lot of stock market volatility.
B) The bond market has experienced the most volatility in the 1980s as interest rates varied dramatically.
C) High risk means that an investor may receive poor returns in the short run.
D) All of the statements are correct.

Question

Quizplus · Accepted Answer

Each statement accurately reflects aspects of asset risk. A) highlights the inherent volatility in the stock market, B) points out a period of significant volatility in the bond market due to fluctuating interest rates, and C) correctly associates high risk with the potential for poor short-term returns.

Which of the Following Statements Regarding Risk of Assets Is