Q398
Variability for expected returns for projects is classified as
A.
expected risk
B.
stand-alone risk
AnswerC.
variable risk
D.
returning risk
Answer: Option B
Solution
Answer: Option B
Solution:
Variability for expected returns for projects is classified as stand-alone risk. Standalone risk measures the dangers associated with a single facet of a company's operations or by holding a specific asset, such as a closely-held corporations. In portfolio management, standalone risk measures the undiversified risk of an individual asset.