18
QuizMultiple Choice

Electric Current

Question 18 • *CHS TN-Physical Science

Risk is the chance that an investment will

Answer
A
fail to reach the expected rate of return.
B
guarantee the expected rate of return.
C
have a rate of return much higher than expected.
D
provide other opportunities for the investor.

Explanation

Investment risk is the possibility that the actual return will be different from the expected return, including falling short of it. Therefore, risk is the chance an investment will fail to reach its expected rate of return; it does not guarantee that return.

AI-written and checked against the verified answer.

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