Multiple Choice
Which of the following most closely defines the term risk in finance?
A) Knowing that you will lose money on an investment
B) A decision in which the potential outcomes are known with certainty
C) A measure of the variability of cash flows
D) A situation in which the required return on an asset equals its expected return
E) A measure of the magnitude of cash flows
Correct Answer:

Verified
Correct Answer:
Verified
Q36: The expected return on an asset is
Q37: It costs $1,000 to enter the following
Q38: Bond prices rise when interest rates fall.These
Q39: An expected return from a portfolio<br>A) can
Q40: Suppose you paid $18.50 per share for
Q42: If Microsoft stockholders expect either a 25%
Q43: A company has a 40% probability of
Q44: After taking a reading-week trip to the
Q45: Consider the following bet: heads I pay
Q46: You bought 200 shares of Microsoft at