Q757
Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as
A.
diversifiable risk
B.
market risk
AnswerC.
stock risk
D.
portfolio risk
Answer: Option B
Solution
Answer: Option B
Solution:
Risk affects any firm with factors such as war, recessions, inflation and high interest rates is classified as market risk. Market risk is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved.