SIE Exam Practice Question 97
Question: 97
____________ risk refers to the impact that bad management decisions, other internal missteps, or external situations can have on a company's performance and on the value of investments in that company.
Correct Answer: D
Explanation:
Management risk refers to the impact that bad management decisions or other internal missteps can have on a company's performance and on the value of investments in that company. Market risk, or systematic risk, is the potential for loss due to the performance of the financial market. Investment risk is the risk that an investment's performance will be worse than expected. Financial risk is a generic term describing a variety of risk types, including credit risk, liquidity risk, and operational risk.
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