To measure an investment's risk,which of the following would you use?

Question

Quizplus · Accepted Answer

Standard deviation of returns is a commonly used measure of investment risk, as it helps to quantify the degree of variation or volatility in the returns of an investment. The higher the standard deviation, the higher the risk associated with the investment. Time value of money is not a measure of risk but a concept used to explain the value of money over time. Range of returns on the entire market and standard deviation of prices are not specific measures of risk associated with a particular investment.

To Measure an Investment's Risk,which of the Following Would You