Investment Returns and Risk Quiz
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Questions and Answers

What does return on an investment typically include?

  • Expenses related to the investment
  • Insurance premiums
  • Income received and change in market price (correct)
  • Income tax deductions

    • How is risk defined in relation to investment returns?

  • The total investment amount
  • Variability of returns from those that are expected (correct)
  • The income received from the investment
  • The market price of the investment

    • How is return on investment usually expressed?

  • As a percentage of the expected returns
  • As a percentage of the total market value
  • As a percentage of the beginning market price (correct)
  • As a fixed monetary value

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