Question

risk is best thought of as a. the chance that the actual return will be zero or negative b. the chance that the actual return will differ from the expected return c. the chance that the expected return will be lower than what investors demand d. the chance that the expected return will be incorrectly estimated

Answer 1

The correct answer is option C.

The best way to understand risk is as a chance that the expected return will be lower than the investors demand.

For example -

If an investor is investing rupees 100000 in a project and expecting 10% Returns, then even return of 8 % is risk because it is lower than what the investor demanded.

Answer 2

Answer:

the correct answer is B