Even though an investor expects a positive rate of return, it is possible that the actual return will be negative.

Question

Quizplus · Accepted Answer

This is because there are various factors that can affect the actual return such as market volatility, economic conditions, company performance, and unforeseen events. Therefore, there is always a risk involved in investing, and investors should be prepared for the possibility of a negative return.

Even Though an Investor Expects a Positive Rate of Return