Variation in the rate of return of an investment is a measure of the riskiness of that investment.

Question

Quizplus · Accepted Answer

Variation in the rate of return of an investment is a common measure of risk associated with the investment. The higher the variation in the rate of return, the greater the risk of the investment. Therefore, it is generally true that the variation in the rate of return of an investment is a measure of its riskiness.

Variation in the Rate of Return of an Investment Is