Investment risk is [blank].
A)the probability of achieving a return that is greater than what was expected
B)the probability of achieving a beta coefficient that is less than what was expected
C)the probability of achieving a return that is less than what was expected
D)the probability of achieving a standard deviation that is less than what was expected

Question

Quizplus · Accepted Answer

Investment risk refers to the potential for an investor to experience a loss or a return that is lower than their expected return. Therefore, option C - the probability of achieving a return that is less than what was expected - is the most appropriate answer. Option A is incorrect, as it describes the potential for a higher return, which would not be considered a risk. Option B relates to beta, which is a measure of systematic risk, but it does not fully capture the concept of investment risk. Lastly, option D refers to standard deviation, which is a measure of volatility, but again, it is not a comprehensive definition of investment risk.

Investment Risk Is [Blank]