13
QuizMultiple Choice

Investing and Financial Markets

Question 13 • Personal Finance - EL3403

Which term refers to the possibility of an investor losing some or all of an investment?

Answer
r
risk
l
likelihood
p
probability
c
chance

Explanation

Risk is the possibility that an investment will lose value, including the possibility of losing some or all of the money invested. Likelihood, probability, and chance refer more generally to how possible an event is; the investment-specific term is risk.

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