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1 FINANCE MCQS

In financial transactions, the risk that there will be no profit in selling an asset is classified as:

  • Price risk
  • Profit risk
  • Selling risk
  • Financial risk
Correct Answer: A. Price risk

Detailed Explanation

Price risk refers to the possibility of losing potential profit or facing losses because of unfavorable changes in an asset’s price before selling. This risk is common in markets where prices fluctuate, such as stocks, bonds, or commodities. Investors face price risk when market movements reduce the value of their holdings.

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