Which of the following statements about the various kinds of risk is true?
A) Interest rate risk and inflation risk are diversifiable risks.
B) Liquidity risk and political risk are systematic risks.
C) Business risk and exchange rate risk are firm-specific risks.
D) Financial risk and maturity risk are market risks.
E) Default risk and inflation risk are relevant risks.

Question

Quizplus · Accepted Answer

Liquidity risk and political risk are systematic risks because they affect the entire market or a large segment of it, rather than just a specific company or industry.

Which of the Following Statements About the Various Kinds of Risk