Which of the following is an example of investment risk in financial planning?
A)Loss of income due to short-term disability
B)Loss of liquidity by locking in fixed-term deposit
C)Loss of property by not buying insurance
D)Loss of capital in a particular mutual fund

Question

Quizplus · Accepted Answer

Investing in a mutual fund involves market risk and the possibility of losing capital if the fund underperforms or the market experiences a downturn. Therefore, option D is an example of investment risk in financial planning. The other options are not directly related to investment risk but are associated with loss of income, liquidity, and property.

Which of the Following Is an Example of Investment Risk