The risk that you will not be able to find a buyer at a fair market price,and will wind up having to sell for less than an asset's worth is called ________ risk.
A)inflation
B)interest
C)liquidity
D)call

Question

Quizplus · Accepted Answer

Liquidity risk refers to the risk associated with the ease of buying or selling an asset quickly without affecting its price. If an asset isn't easily liquidated, such as a house or a highly specialized investment, the seller may not be able to find a buyer at a fair market price or sell the asset quickly, resulting in a loss of value. This risk is also known as marketability risk. Inflation risk refers to the risk that rising prices will reduce the purchasing power of your money over time. Interest rate risk refers to the risk that fluctuating interest rates will affect the value of an investment. Call risk refers to the risk that an investor will be forced to sell a bond or stock before its maturity date, resulting in a loss of potential interest or dividend payments.

The Risk That You Will Not Be Able to Find