Which rule is important to remember when evaluating risk? Long-term investments tend to be less risky. There i

Question

Which rule is important to remember when evaluating risk?

Long-term investments tend to be less risky.
There is no connection between risk and return
Investments believed to be unpredictable are more risky.
The demand tends to be higher for high-risk investments.

GPT-5 mini · Answer

Investments believed to be unpredictable are more risky.

Explanation: Risk is largely about the uncertainty/unpredictability of outcomes. The more unpredictable an investment's returns, the higher its risk. (The other statements are false or misleading: there is a connection between risk and return; demand is usually lower for higher-risk investments unless compensated by higher expected returns; and while longer horizons can reduce some types of risk for certain assets, that’s not a universal rule.)

Which rule is important to remember when evaluating risk?

Long-term investments tend to be less risky.
There is no connection between risk and return
Investments believed to be unpredictable are more risky.
The demand tends to be higher for high-risk investments.

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Which rule is important to remember when evaluating risk? Long-term investments tend to be less risky. There is no connection between risk and return Investments believed to be unpredictable are more risky. The demand tends to be higher for high-risk investments.

All Answers 1

Submit Your Answer

Which rule is important to remember when evaluating risk?

Long-term investments tend to be less risky.
There is no connection between risk and return
Investments believed to be unpredictable are more risky.
The demand tends to be higher for high-risk investments.