Alice just inherited an antique wood burning stove.While she appreciates the sentimental value of the stove she is concerned that an investment such as this might not be able to be converted into cash quickly at a fair market price.Alice is worried about ________ on this as an investment.
A)liquidity risk
B)cash conversion
C)maturity risk
D)default risk
E)none of the above

Question

Quizplus · Accepted Answer

Liquidity risk refers to the possibility of not being able to sell an investment quickly at a fair market price. In this case, Alice is concerned about the wood burning stove's liquidity as an investment.

Alice Just Inherited an Antique Wood Burning Stove