To measure an investment's risk, you may use all of the following, except
A) time value of money.
B) range of returns.
C) standard deviation of returns.
D) subjective measures of risk.

Question

Quizplus · Accepted Answer

The time value of money is a concept that represents the idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. It is not a direct measure of an investment's risk. Instead, risk is typically assessed through the variability of returns (such as the range of returns or standard deviation of returns) or through subjective measures of risk, which consider investors' personal perceptions and tolerance levels.

To Measure an Investment's Risk, You May Use All of the Following