________ risk is the potential loss of converting an investment into cash.

Question

Quizplus · Accepted Answer

Liquidity risk refers to the potential loss or cost associated with liquidating an investment quickly to meet cash needs or take advantage of an opportunity. It is the risk that an investor cannot find a buyer or seller quickly enough or at a fair price to transfer an asset or investment. Credit risk refers to the risk of default on a loan or investment, Interest rate risk refers to the potential loss due to fluctuations in interest rates, and asset risk refers to the potential loss of value in a specific asset or investment.

________ Risk Is the Potential Loss of Converting an Investment