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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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