Market Risk in Finance – Impact of Asset Price and Exchange Rate Changes (MCQ)

1 FINANCE MCQS

The risk caused by changes in asset prices and exchange rates is called?

Asset risk
Trade risk
Exchange risk
Market risk

Correct Answer: D. Market risk

Detailed Explanation

Market risk refers to the possibility of losses due to fluctuations in market factors such as asset prices, interest rates, and exchange rates. It affects the overall market, making it a non-diversifiable risk. This type of risk is common in investments, currency trading, and stock markets.

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The risk caused by changes in asset prices and exchange rates is called?

The risk caused by changes in asset prices and exchange rates 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…