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All Securities Involve Risk of Some Kind

question 178

True/False

All securities involve risk of some kind.


Definitions:

Probability Range

A span of values within which a probable outcome is expected to occur, often expressed as a percentage.

Standard Deviation

A statistical measure of the dispersion of returns for a given security or market index.

Risk Premium

Risk premium is the additional return an investor demands for holding a risky asset over a risk-free asset, compensating for the higher uncertainty.

Risk Premium

The extra return demanded by investors for taking on additional risk above the risk-free rate of return.

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