One measure of t he risk of an asset may be found by subtracting the worst outcome from the best outcome.

Question

Quizplus · Accepted Answer

This statement is true. The range between the best and worst outcomes of an asset is a simple measure of volatility and risk. Subtracting the worst outcome from the best outcome gives a numerical value that indicates the potential range of outcomes, and therefore, the degree of risk associated with the asset.

One Measure of T He Risk of an Asset May