Asked by Marvelous Abraham on Jul 23, 2024
Verified
The true risk of any investment is the __________________________.
A) Magnitude of the investment's return.
B) Part of the return resulting from surprises.
C) Expected part of any announcement.
D) Impact of unsystematic risk.
E) Risk premium of the investment.
True Risk
The actual level of risk associated with an investment or decision, considering all factors including unknowable future events.
- Examine the effects of news disclosures on the valuation of stocks and the responses of investors.
Verified Answer
MJ
Michael JuarezJul 24, 2024
Final Answer :
B
Explanation :
The true risk of an investment is the part of the return resulting from surprises, as it represents the uncertainty or the unpredictable elements that can affect an investment's performance.
Learning Objectives
- Examine the effects of news disclosures on the valuation of stocks and the responses of investors.
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