Factors that impact inherent risk of financial instruments do not include
A) management's objectives related to investment activity.
B) the complexity of the securities.
C) the cost of the securities.
D) the company's prior experience with certain investments.

Question

Quizplus · Accepted Answer

The cost of the securities is not a factor that impacts inherent risk. Inherent risk is determined by factors such as management's objectives related to investment activity, the complexity of the securities, and the company's prior experience with certain investments.

Factors That Impact Inherent Risk of Financial Instruments Do Not