All are true, except:

Question

Quizplus · Accepted Answer

Risk is defined as the uncertainty regarding the actual returns that will be realized from an investment compared to the expected returns. However, the statement in option B describes risk as the possibility that the actual (ex post) return may differ from the expected (ex ante) return, which is a correct definition of risk, making it not the exception to the truth among the given options. The confusion arises from the prompt's structure, which asks for the exception to true statements. Given the correct interpretation of the task, all options A, C, and D accurately describe aspects of risk and returns in finance, making them true statements. Therefore, the initial guidance to select B as the exception was incorrect based on the misunderstanding of the task's requirements.

All Are True, Except