The Riskiness of an Asset Is Measured by

question 23

Multiple Choice

The riskiness of an asset is measured by

• A)the magnitude of its return.
• B)the absolute value of any change in the asset's price.
• C)the standard deviation of its return.
• D)risk is impossible to measure.

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Definitions:

External Customers

Individuals or entities outside an organization who purchase the company's products or services.

Goods Or Services

Tangible products (goods) and intangible offerings (services) that fulfill the needs or desires of consumers.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent, salaries, and insurance premiums.

Monopolistically Competitive

Refers to a market structure where many firms sell similar, but not identical, products, allowing for some degree of market power and differentiation.