Quiz on Lesson ” What Is Financial Risk “

What is the relationship between risk and reward in an investment?

A) Higher risk results in higher reward

B) Lower risk results in higher reward

C) Risk and reward are not related

What is the 10-year Federal note used for in the lesson?

A) To demonstrate the relationship between risk and reward

B) As a benchmark for assessing the amount of risk involved in a particular investment

C) To illustrate how debt can increase the risk for a company and its investors

What is one of the main causes of financial risk in an investment as discussed in the lesson?

A) Excessive debt

B) A lack of resources

C) A slow growth rate

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