The Risk Involved in Owning a Financial Asset Is Best

Multiple Choice

The risk involved in owning a financial asset is best thought of as

A) equal to the interest received from ownership of the asset.
B) the chance that the value of the asset will rise or fall relative to what you expect.
C) equal in most instances to the liquidity of the asset.
D) the difference between the return on the asset after taxes and the return on a similar tax-free asset.