____ risk refers to the uncertainty in the return on a foreign financial asset owing to the possibility that the foreign government might take actions that are detrimental to the investor's financial interests.

Question

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Political risk refers to the uncertainty in the return on a foreign financial asset due to potential actions by a foreign government that may negatively impact the investor's financial interests, such as nationalization or expropriation of assets, changes in regulations or taxation, or political instability. Exchange rate risk involves the uncertainty in the value of the foreign asset due to fluctuations in exchange rates, commercial risk refers to the possibility of default or bankruptcy of the foreign entity, and interest rate risk relates to changes in interest rates that affect the return on the investment.

____ Risk Refers to the Uncertainty in the Return on a Foreign