An important risk dimension other than variability of returns that motivates investors is ____.
A) standard deviation
B) beta
C) risk of failure
D) coefficient of variation

Question

Quizplus · Accepted Answer

The risk of failure is an important dimension that motivates investors, as they are concerned about the possibility of losing their entire investment. This risk is particularly relevant in investments in small or newly established companies, where the probability of failure is higher. Variability of returns (measured by standard deviation and coefficient of variation) and beta (which measures the sensitivity of an asset's returns to market movements) are also important risk dimensions, but they do not consider the risk of complete loss that investors face.

An Important Risk Dimension Other Than Variability of Returns That