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| *Ostroff, Fair and Company>>>Investing |
The gain or loss that results from an investment over a specified period of time is known as what? |
The question is multiple choice. The choices are: risk, return, uncertainty, and expected value. Return Return is based on two components. The investment can give you cash payments, which are called dividends for stocks and coupons for bonds. The other component of return is the value of the investment itself rising and falling. This is called capital gains or captial losses. Risk is the volatility of the investment going up and down. Something that goes up and down an average of 1% per day has higher risk than something that goes up and down an average of 0.5%. Uncertainty is the same as in normal english language. It's not knowing what will happen in the future. Expected value is what someone expects an investment will be worth in the future. Source(s): Professional investor |
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