Which of the following is TRUE of risk?
A)Risk and return are inversely proportionate to each other.
B)Higher the risk associated with a security the lower is its return.
C)Risk is a measure of the uncertainty surrounding the return that an investment will earn.
D)Riskier investments tend to have lower returns as compared to T-bills which are risk free.

Question

Quizplus · Accepted Answer

Risk is the measure of the uncertainty surrounding the return that an investment will earn. It is not directly proportional to return or inversely proportional to return. It is also not always true that riskier investments have lower returns.

Which of the Following Is TRUE of Risk