The possibility of a structural or financial change in a corporation that causes a lowered credit rating is known as _________ risk.

Question

Quizplus · Accepted Answer

The possibility of a specific event, such as a structural or financial change in a corporation, that can cause a lowered credit rating is known as event risk. Systematic risk refers to risks that affect the entire market, interest rate risk refers to the possibility of interest rate fluctuations affecting the value of investments, market risk refers to the potential losses due to market changes, and placement risk is not a recognized financial term.

The Possibility of a Structural or Financial Change in a Corporation