Risk is indicated by variability of returns, whether the variability is considered positive or negative. Both the positive and negative outcomes must be evaluated when considering risk.

Question

Quizplus · Accepted Answer

This statement is true, as risk refers to the possibility of experiencing unexpected or undesirable outcomes, which can be either negative or positive. Therefore, both types of variability in returns should be taken into account when assessing risk.

Risk Is Indicated by Variability of Returns, Whether the Variability