7-52 Event risks often cause sudden and unanticipated changes in financial market conditions.

Question

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Event risks, such as natural disasters, political upheavals, or unexpected announcements, can significantly impact financial markets and cause unexpected changes in market conditions. These events can lead to volatility, sudden price fluctuations, and increased risk for investors. Therefore, it is important for investors to be aware of event risks and incorporate them into their investment strategies.

7-52 Event Risks Often Cause Sudden and Unanticipated Changes in Financial