All of the following statements about risk are correct EXCEPT:
A)Risk can be defined as the chance for financial loss.
B)The term risk is used interchangeably with uncertainty.
C)Risk refers to the certainty of returns associated with a given asset.
D)The more certain the return from an asset, the less variability and therefore less risk.

Question

Quizplus · Accepted Answer

Risk does not refer to the certainty of returns associated with a given asset. It refers to the possibility of loss or uncertainty in achieving expected returns.

All of the Following Statements About Risk Are Correct EXCEPT