WorksheetsRisk
Total questions: 10
Worksheet time: 8mins
The change of government policy is an example of _____________.
Political Risk
Foreign Exchange Risk
Business Risk
Purchasing Power Risk
_______________ refers to the possibility that the rate of return on investment is not sufficient to compensate the rise in the cost of living.
Political Risk
Social Risk
Financial Risk
Purchasing Power Risk
The fluctuation of world currencies is an example of _________________.
Social Risk
Financial Risk
Foreign Exchange Risk
Purchasing Power Risk
When interest rate rise, the value of the existing financial securities is lower than the new securities.
True
False
_______________ is risk associated with the financial structure of the firm whether the firm is highly leveraged.
Business Risk
Financial Risk
Interest Rate Risk
Social Risk
___________ aggressively invest in risky financial assets such as stock and FOREX.
Risk Adverse
Risk Neutral
Risk Taker
Change in market interest rate is an example of _______________.
Systematic Risk
Unsystematic Risk
Diversifiable Risk
Systematic risk can be diversifies away by increasing number of securities in the investment portfolio.
True
False
Variability in the firm's sales is an example of ___________.
Purchasing Power Risk
Financial Risk
Social Risk
Business Risk
One of the financial derivatives provide the right to the holders to buy or sell an underlying assets at an agreed-upon price and date. This financial derivative is ___________________.
Forwards
Futures
Options
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