A portfolio's risk is measured by its degree of volatility because the ________ volatile the returns, the ________ uncertain the future return on the portfolio.
A) more; more
B) more; less
C) less; more
D) None of the above.

Question

Quizplus · Accepted Answer

The more volatile the returns of a portfolio, the more uncertain the future return on the portfolio, as volatility indicates the degree to which the return on the portfolio can fluctuate.

A Portfolio's Risk Is Measured by Its Degree of Volatility