A potential future negative impact to value and/or cash flows is often discussed in terms of probability of loss and the expected magnitude of the loss. This is called
A) options.
B) standard deviation.
C) coefficient of variation.
D) risk.

Question

Quizplus · Accepted Answer

Risk is the term used to describe the potential future negative impact to value and/or cash flows, often discussed in terms of the probability of loss and the expected magnitude of the loss. Options, standard deviation, and coefficient of variation are all related to measuring or managing risk but do not directly describe the concept of potential future negative impacts themselves.

A Potential Future Negative Impact to Value And/or Cash Flows