Market Risk is also called as __________?
Correct answer: D. Systematic Risk
- A. Idiosyncratic Risk
- B. Portfolio Risk
- C. Capital Structure Risk
- D. Systematic Risk
Explanation
Market risk is another name for systematic risk because it results from economy-wide or market-wide factors such as inflation, interest rates, or recessions. Idiosyncratic risk is security-specific and can generally be diversified away.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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