True or False: Investment risk is defined as the probability that actual cash flows will differ from expected cash flows.

The statement is accurate because investment risk refers to the uncertainty regarding the future returns from an investment. Specifically, it highlights the possibility that the actual cash flows generated from an investment may deviate from the cash flows initially anticipated. This concept is rooted in the idea that various factors—such as market fluctuations, economic conditions, and the performance of the underlying asset—can impact the cash flow outcomes. Thus, the essence of investment risk lies in this difference between expected and actual cash flows, making the assertion that investment risk is the probability of such differences true.