3 Questions
What is the formula for calculating expected return?
Expected return = (Return 1 * Probability 1) + (Return 2 * Probability 2) + ... + (Return n * Probability n)
Define risk in the context of investments.
Risk is the variability of returns from those that are expected.
How is return typically expressed?
Return is usually expressed as a percentage of the beginning market price of the investment.
Test your knowledge of investment concepts with this quiz on returns, risk, and expected return. Evaluate your understanding of income received on investments, market price changes, and the variability of returns.
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