Asked by Akwinder Chattha on Jul 08, 2024
Verified
Risk is the uncertainty about the return we will earn.
Risk
The potential for losses or less-than-expected returns, present in all types of investments and business activities.
Uncertainty
The state of having limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome.
- Acquire knowledge on the relationship between risk and return in investment decisions.
Verified Answer
RW
Rosemaire WynterJul 11, 2024
Final Answer :
True
Explanation :
This statement accurately describes the concept of risk. When investing, there is always a certain level of uncertainty about the amount of return we will ultimately earn on our investment. This uncertainty is referred to as risk.
Learning Objectives
- Acquire knowledge on the relationship between risk and return in investment decisions.