Answered: The measure of risk is called: Group…

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The measure of risk is called:

Group of answer choices

Beta

The market rate of return

The rate provided by short term government securities

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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