Ch.10 · Risk Measures and Ratios · easy
Which of the following best defines 'risk' in the context of mutual fund investments?
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EXPLANATION
Risk in investing refers to the uncertainty or variability of returns — the possibility that actual returns will differ from expected returns. This includes both downside risk (losses) and upside potential. Different types of risk (market, credit, liquidity, interest rate) affect mutual fund returns differently.
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