If an investor is uncertain whether to repatriate his or her capital gains from the sale of a foreign security due to the foreign government's capital controls, the uncertainty is known as _____ risk.

Question

Quizplus · Accepted Answer

The uncertainty of repatriating capital gains due to foreign government's capital controls refers to the political risk, which involves the potential for changes in laws, regulations, or government policies that could negatively impact an investment. The other options, exchange rate risk, credit risk, and investment risk, do not directly relate to the situation described in the question.

If an Investor Is Uncertain Whether to Repatriate His or Her