Risk Exists When the Probability of an Action Being Successful

question 116

Multiple Choice

Risk exists when the probability of an action being successful is less than ________ percent and losses may be higher than gains.

• A)20
• B)40
• C)60
• D)80
• E)100

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Definitions:

Compounded Monthly

The process of adding interest to the principal sum of a loan or deposit, where the interest is calculated on a monthly basis.

Early Withdrawal Penalty

A charge applied for taking money out of a financial account or investment before a set date or term has ended.

Spreadsheet

A digital document that uses rows and columns to organize data, calculations, and information, commonly used in accounting and financial analysis.

Multiplier

A factor used in economics to quantify the effect of investment spending on the aggregate income or output of an economy.