Uncertainty about the future market value of an asset is referred to as
A) price risk.
B) credit risk.
C) interest rate risk.
D) exchange rate risk.

Question

Quizplus · Accepted Answer

Price risk refers to uncertainty about the future market value of an asset. Credit risk refers to the risk of default by a borrower. Interest rate risk refers to the risk of changes in interest rates affecting the value of investments. Exchange rate risk refers to the risk of fluctuations in currency exchange rates affecting investments.

Uncertainty About the Future Market Value of an Asset Is