Uncertainty in Finance

question 32

Multiple Choice

Uncertainty in finance:

• A) is defined as the unmeasurable variation in outcomes.
• B) can be measured with a degree of confidence.
• C) is defined as measurable variation in outcomes.
• D) none of the options explain uncertainty in finance.

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Definitions:

Return on Investment

A measure of the profitability of an investment, calculated as the net profit of the investment divided by its cost.

Net Profit

Represents the amount of money a company retains after subtracting all its expenses, taxes, and costs from its total revenue.

Net Income

represents the total earnings of a company after deducting all expenses and taxes from total revenue.

Return on Investment

The gain or loss generated on an investment relative to the amount of money invested.