Which of the following statements about the various kinds of risk is true?
A)Interest rate risk and inflation risk are diversifiable risks.
B)Economic risk and political risk are systematic risks.
C)Business risk and exchange rate risk are firm-specific risks.
D)Financial risk and default risk are market risks.
E)Default risk and economic risk are relevant risks.

Question

Quizplus · Accepted Answer

Economic risk and political risk are systematic risks because they affect the entire market or economy, rather than just a specific company or industry.

Which of the Following Statements About the Various Kinds of Risk