What is Financial Risk in Investments? Finance MCQ

1 FINANCE MCQS

The risk of losses on financial investments due to adverse price movements is called ____________?

Systematic Risk
Idiosyncratic Risk
Financial Risk
Business Risk

Correct Answer: C. Financial Risk

Detailed Explanation

Financial risk is the possibility of losing money on an investment due to unfavorable changes in prices of financial instruments such as stocks, bonds, or derivatives. These risks can result from market volatility, interest rate changes, or credit events, impacting the value of investments and leading to potential losses for investors.

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The risk of losses on financial investments due to adverse price movements is called ____________?

The risk of losses on financial investments due to adverse price movements is called ____________?

Detailed Explanation

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…