5
QuizMultiple Choice

Investing — Quiz

Question 5 • Personal Finance and Economics

What is the definition of risk?

Answer
A
amount made in profit on an investment
B
using borrowed funds for an investment
C
possibility of losing money on an investment
D
putting money into more than one investment

Explanation

Risk is the possibility that an investment will lose value and you may lose money. The correct choice is “possibility of losing money on an investment.” Profit is a possible gain, while investing in multiple assets or using borrowed funds describes other investment strategies.

AI-written and checked against the verified answer.

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