The chance of receiving an actual return that differs from the one that is expected is called _____.
A) probability distribution
B) beta
C) risk
D) change in beta
E) payoff

Question

Quizplus · Accepted Answer

The term "risk" refers to the uncertainty or variability of returns from an investment, which includes the chance of receiving an actual return that differs from the one that is expected. Probability distribution refers to the range of probabilities for potential returns. Beta is a measure of a stock's volatility compared to the overall market. Change in beta refers to the change in a stock's volatility over time. Payoff refers to the amount of profit or loss from an investment. Therefore, the best choice is C.

The Chance of Receiving an Actual Return That Differs from the One