Bert has invested all of his savings in a choice piece of downtown Midland real estate.Recently he has had a personal emergency and needs money.Bert can't sell the property because of the state of Midland's economy.His problem is an example of ____ risk.
A)financial
B)market volatility
C)interest rate
D)marketability

Question

Quizplus · Accepted Answer

The problem Bert is facing is related to the marketability or liquidity of his real estate property. He cannot sell the property because of the state of Midland's economy, which means there are no interested buyers in the market who are willing to pay a fair price for the property. This is an example of marketability risk, which is the risk associated with the difficulty of selling an asset without incurring a loss in value.

Bert Has Invested All of His Savings in a Choice