After September 11,2001,General Electric's share price dropped significantly.This was because of the
A)business risk.
B)market risk.
C)exchange risk.
D)interest rate risk.

Question

Quizplus · Accepted Answer

The drop in General Electric's share price after September 11,2001 was due to market risk, which is the risk that the overall market or a specific sector will decline. The terrorist attacks caused widespread uncertainty and fear in the financial markets, leading to a market-wide drop in stock prices. Business risk refers to the risk associated with a specific company's operations, exchange risk refers to the risk of currency fluctuations, and interest rate risk refers to the risk of changes in interest rates affecting the value of investments. These were not the primary factors in General Electric's share price drop following 9/11.

After September 11,2001,General Electric's Share Price Dropped Significantly