Question

Economists define risk as
A) the difference between the interest rate borrower
s pay and the interest rate lenders receive.
B) the chance that the value of financial assets will
change from what you expect.
C) the ease with which an asset can be exchanged for other assets or for goods and services.
D) the difference between the return on common stock
and the return on corporate bonds.

Answer 1

Answer:

The answer is B) the chance that the value of financial assets will

change from what you expect.

Explanation:

Risk is the potential for uncontrolled loss of something of value. The decline in the price of an asset or security relative to the rest of the market is price risk.