A plot showing the gains and losses that will occur on a financial asset as a result of unexpected price changes is called a _______________.
A) Risk profile.
B) Payoff profile.
C) Security market line.
D) Scatter plot.
E) Normal distribution.

Question

Quizplus · Accepted Answer

A payoff profile illustrates the potential gains and losses of a financial asset due to unexpected price changes.

A Plot Showing the Gains and Losses That Will Occur