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:

Profit Margin

Net income divided by sales.

Expenses

The costs incurred in the day-to-day operations of an organization.