Answered: The measure of risk is called: Group…

The measure of risk is called: Group of answer choices The rate provided by short term government securities Beta The market rate of return The rate provided by long term government securities

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter5: Risk Analysis

Section: Chapter Questions

Problem 8QE

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Question

The measure of risk is called:

Group of answer choices

The rate provided by short term government securities

Beta

The market rate of return

The rate provided by long term government securities

Definition Definition Percentage gain or loss from a specific investment over time. The rate of return is the difference between the closing and initial values of an investment divided by the initial value of the investment. The closing value includes any intermediate cash flows such as dividends or interest amounts.

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