Which of the Following Statements Gives the Best Definition/description of the Risk

question 49

Multiple Choice

Which of the following statements gives the best definition/description of the risk that is associated with an investment?

• A)The total risk of an investment is the chance that it will earn a negative return.
• B)The total risk of an investment is the chance that it will earn a positive return.
• C)The total risk of an investment is the chance that it will earn a return other than the one that is expected.
• D)The total risk of an investment is measured by its beta coefficient.
• E)The total risk of an investment can be determined by computing its expected return.

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Definitions:

Signature Card

A document signed by an account holder at a financial institution, providing a specimen signature for verification purposes.

Unauthorized Use

Utilization of property, resources, or information without permission, typically violating legal or contractual boundaries.

Originator

The individual or entity that creates or initiates something, often used in the context of loans and financial transactions.

Beneficiary

An individual or entity entitled to receive benefits or assets from a will, trust, insurance policy, or other legal arrangement.