Measures of Risk for an Investment Include

question 66

Multiple Choice

Measures of risk for an investment include

• A) variance of returns and business risk.
• B) coefficient of variation of returns and financial risk.
• C) business risk and financial risk.
• D) variance of returns and coefficient of variation of returns.
• E) variance of returns and economic risk.

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Definitions:

External Users

Individuals or entities outside of a company, such as investors, creditors, and regulatory agencies, who rely on financial statements to make decisions about the company.

Accounting Information

Financial data and statements that provide insight into a business's economic activities and financial health.

Information Needs

The data and information requirements of individuals or organizations to make informed decisions or fulfill specific tasks.

Internal User

An individual or group within an organization who uses financial and operational information for decision-making purposes, such as managers and employees.