The probability that the desired return on an investment will be different from the desired return is defined as
A)risk.
B)open market operations.
C)reserve requirements ratio.
D)discount rate.
E)unable to tell with the information provided.

Question

Quizplus · Accepted Answer

The probability that the actual return on an investment will differ from the desired return is defined as risk. This is a fundamental concept in finance, as investors are constantly trying to balance the potential return on their investments with the risk that they will not achieve their desired return. The other options listed are all tools or policies used by central banks to manage the money supply and influence the economy.

The Probability That the Desired Return on an Investment Will