ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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risk
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probability
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Either A or B
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None of the above
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Detailed explanation-1: -Capital risk is the potential of loss of part or all of an investment.
Detailed explanation-2: -Risk is any uncertainty with respect to your investments that has the potential to negatively impact your financial welfare. For example, your investment value might rise or fall because of market conditions (market risk).
Detailed explanation-3: -Equity Risk: This risk pertains to the investment in the shares. The market price of the shares is volatile and keeps on increasing or decreasing based on various factors. Thus, equity risk is the drop in the market price of the shares. Interest Rate Risk: Interest rate risk.
Detailed explanation-4: -Financial risk is the possibility of losing money on an investment or business venture.
Detailed explanation-5: -Types of Risks Widely, risks can be classified into three types: Business Risk, Non-Business Risk, and Financial Risk.