Market risk is defined as the risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments.

Question

Quizplus · Accepted Answer

The definition of market risk is incorrect. Market risk refers to the risk of loss due to market or economic factors such as changes in interest rates, exchange rates, or the stock market. Political risk refers to the risk of loss due to politically based events or actions by host governments.

Market Risk Is Defined as the Risk of Loss of Assets