Series 7 Exam Question 109: Answer and Explanation

Question: 109

Which of the following are systematic risks?

I. Currency risk

II. Purchasing power risk

III. Reinvestment risk

• A. I and II
• B. I and III
• C. II and III
• D. I, II, and III

Correct Answer: A

Explanation:

A. Both currency risk and purchasing power risk are systematic risks while reinvestment risk is a non-systematic risk.