________ is one way of assessing 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

Question

Quizplus · Accepted Answer

Range is the difference between the highest and lowest possible values, i.e., the optimistic outcome and the pessimistic outcome, respectively. Subtracting the pessimistic outcome from the optimistic outcome gives the range. Therefore, the range is one way of assessing an asset's risk. Variance, standard deviation, and probability distribution are also measures of risk, but they are not calculated by subtracting the optimistic outcome from the pessimistic outcome.

________ Is One Way of Assessing an Asset's Risk