Risk is:
A)the probability that return will be less than expected.
B)the standard deviation of the probability distribution of returns.
C)variability in return.
D)All of the above

Question

Quizplus · Accepted Answer

All three statements are true definitions of risk. A refers to the possibility of receiving lower returns than expected, B refers to the extent to which returns vary from the expected value, and C refers to the possibility of obtaining different returns over time. Therefore, the correct answer choice is D, "All of the above."

Risk Is