ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Business risk
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Purchasing power risk
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Market risk
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Interest rate risk
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Detailed explanation-1: -Market Risk. Interest Rate Risk. Purchasing Power Risk (or Inflation Risk) Exchange Rate Risk. 05-Dec-2022
Detailed explanation-2: -The five main types of systematic risk include market risk, interest rate risk, purchasing power/inflation risk, and exchange rate risk. Market risk functions like a string of dominoes in that the tipping of one can cause others to topple. Investors tend to follow the movements of the market.
Detailed explanation-3: -Systematic risk is a risk that impacts the entire market or a large sector of the market, not just a single stock or industry. Examples include natural disasters, weather events, inflation, changes in interest rates, war and even terrorism.
Detailed explanation-4: -What Is Systematic Risk? Systematic risk refers to the risk inherent to the entire market or market segment. Systematic risk, also known as undiversifiable risk, volatility risk, or market risk, affects the overall market, not just a particular stock or industry.