The Risk Involved in Owning a Financial Asset Is Best

question 39

Multiple Choice

The risk involved in owning a financial asset is best thought of as

• A)equal to the interest received from ownership of the asset.
• B)the chance that the value of the asset will rise or fall relative to what you expect.
• C)equal in most instances to the liquidity of the asset.
• D)the difference between the return on the asset after taxes and the return on a similar tax-free asset.