Risk in finance is defined as the variability of return.

Variability Of Return

Denotes the volatility in the profits or gains from investments over a period.

Risk

The exposure to the potential of loss or damage when the outcome is uncertain.

Acknowledge the benchmarks of risk including standard deviation, variance, and the coefficient of variation.

Verified Answer

Final Answer :

True

Explanation :

Risk measures the degree of variability in returns or the uncertainty of achieving the expected return.

Learning Objectives

Acknowledge the benchmarks of risk including standard deviation, variance, and the coefficient of variation.