The ability to sell an asset quickly at a fair price is associated with
A) Business risk.
B) Liquidity risk.
C) Exchange rate risk.
D) Financial risk.
E) Market risk.

Question

Quizplus · Accepted Answer

The ability to sell an asset quickly at a fair price is associated with liquidity risk, which refers to the risk of being unable to sell an asset quickly or at a fair price due to a lack of market demand or market disruption. Business risk refers to the risk of operating cash flows being affected by business conditions or events. Exchange rate risk refers to the risk of changes in exchange rates affecting the value of foreign investments or liabilities. Financial risk refers to the risk of not being able to meet financial obligations. Market risk refers to the risk of changes in market factors affecting the value of an investment portfolio.

The Ability to Sell an Asset Quickly at a Fair