All of the following are primary risk factors that generate risk premiums except:
A)inflation risk
B)business risk
C)relative risk
D)liquidity risk

Question

Quizplus · Accepted Answer

Inflation risk, business risk, and liquidity risk are all primary risk factors that generate risk premiums as they have a direct impact on the expected return of an investment. Relative risk, on the other hand, is a measure of an investment's risk in relation to a benchmark or market index, and does not necessarily contribute to the generation of risk premiums.

All of the Following Are Primary Risk Factors That Generate