Multiple Choice QuestionFluctuation of prices due to the behaviors of investors in the marketplace is known as Blank______.Multiple choice question.investment riskmarket riskinflation riskfailure risk
Question
Multiple Choice QuestionFluctuation of prices due to the behaviors of investors in the marketplace is known as Blank______.Multiple choice question.investment riskmarket riskinflation riskfailure risk
Solution
The correct answer is "market risk". This term refers to 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. Market risk, also called "systematic risk," cannot be eliminated through diversification, though it can be hedged against.
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