Marketability risk is synonymous with:

Question

Quizplus · Accepted Answer

Marketability risk refers to the risk that an asset cannot be sold quickly enough, or without incurring significant transaction costs, in order to prevent a loss in value. This is commonly associated with liquidity risk, as assets that are less liquid are more susceptible to marketability risk. Maturity risk refers to the risk that the value of a fixed income security will decline as interest rates rise due to its long-term maturity. Default risk refers to the risk that an issuer of a bond or other debt security will not be able to make its scheduled payments. Interest rate risk refers to the risk that changes in interest rates will affect the value of a security or portfolio.

Marketability Risk Is Synonymous With