Risk Is the Amount of Uncertainty About the Return We

question 11

True/False

Risk is the amount of uncertainty about the return we expect to earn in the future.

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Definitions:

Covariance

A measure indicating the extent to which two random variables change together.

Coefficient R

A measure used in statistics to represent the strength and direction of a linear relationship between two variables on a scatter plot.

Variance

A measure of the dispersion of a set of values, indicating how much the values differ from the mean.

Linear Relationship

A type of association where any change in an independent variable is accompanied by a proportional change in a dependent variable.