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Investment Risk Refers to the Likelihood of a Loss

Question 296

Multiple Choice

Investment risk refers to the likelihood of a loss. All of the following given below are types of investment risk EXCEPT.


A) Liquidity risk - losses resulting because invested dollars cannot be accessed. Losses may occur from penalties for early withdrawal, for example.
B) Economic Risks - one of the most obvious risks of investing is that the economy can go bad.
C) Default risk - the possibility of a loss resulting from the bankruptcy of an organization in which funds were invested.
D) Market risk - the possibility of a loss resulting from choosing a relatively poor investment from a large pool of investments.

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