Market risk deals with the inability to sell a security quickly at fair market value.

Question

Quizplus · Accepted Answer

Market risk, also known as systematic risk, refers to the risk of losses in investments due to factors that affect the overall performance of the financial markets, such as economic downturns, political instability, or changes in interest rates, not the inability to sell a security quickly at fair market value, which is more closely related to liquidity risk.

Market Risk Deals with the Inability to Sell a Security