Risk is:
A) Net income divided by average total assets.
B) The reward for investment.
C) The uncertainty about the expected return to be earned.
D) Unrelated to expected return.
E) Derived from the idea of getting something back from an investment.

Question

Quizplus · Accepted Answer

Risk refers to the uncertainty or possibility of loss in relation to the expected return on an investment. It is not related to net income or reward for investment (answers A and B), and it is not unrelated to expected return or simply about getting something back from an investment (answers D and E).

Risk Is