An investment that guarantees its holder $100 return and another investment that earns $0 or $200with equal chances over the same period have equal risk.

Name: An investment that guarantees its holder $100 return and another investment that earns $0 or $200with equal chances over the same period have equal risk.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

Risk is associated with the variability of returns. The first investment has no variability (guaranteed $100), while the second has variability ($0 or $200), indicating higher risk.

An Investment That Guarantees Its Holder $100 Return and Another