The major types of risk are
A)inflation and taxation.
B)credit and bankruptcy.
C)default,interest rate,market,and liquidity.
D)None of the options are correct.

Question

Quizplus · Accepted Answer

Default risk is the risk of a borrower failing to repay a loan, while interest rate risk is the risk of changes in interest rates affecting the value of an investment. Market risk is the risk of changes in the overall market affecting the value of an investment, and liquidity risk is the risk of not being able to sell an investment at a fair price. Together, these four types of risk (default, interest rate, market, and liquidity) make up the major types of risk.

The Major Types of Risk Are