________ Is the Extent of an Asset's Risk

question 81

Multiple Choice

________ is the extent of an asset's risk. It is found by subtracting the pessimistic outcome from the optimistic outcome.

• A) Variance
• B) Standard deviation
• C) Probability distribution
• D) Range

---

Definitions:

Utility Function

A mathematical model in economics that represents how different quantities of goods or services can provide satisfaction to consumers.

Income

The reward garnered over time, generally in a consistent pattern, from occupational or investment sources.

Expected Utility Function

A concept in economics that predicts the utility or satisfaction a rational individual expects to receive from different outcomes, used in decision making under uncertainty.

Sure Payment

A guaranteed payment, often referring to financial transactions where the payer is obligated to pay a certain amount.