When Measuring the Risk of an Asset

question 90

Multiple Choice

When measuring the risk of an asset:

• A) one must measure the uncertainty about the size of future payoffs.
• B) it is necessary to incorporate uncertainties that are not quantifiable.
• C) one must remember that the concept of risk applies only to financial markets, not to financial intermediaries.
• D) one cannot use other investments to evaluate the asset's risk.

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