Which of the following statements gives the best definition/description of the risk that is associated with an investment?
A. The total risk of an investment is the chance that it will earn a negative return.
B. The total risk of an investment is the chance that it will earn a positive return.
C. The total risk of an investment is the chance that it will earn a return other than the one that is expected.
D. The total risk of an investment is measured by its beta coefficient.
E. The total risk of an investment can be determined by computing its expected return.
Answer: C
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