[amp_mcq option1=”exchange risk” option2=”systematic risk” option3=”non-systematic risk” option4=”country risk” correct=”option4″]<\/p>\n
The correct answer is: D. country risk<\/strong><\/p>\n Country risk is the risk of investing in a country due to political, economic, or social instability. Political stability is a major factor in country risk because it affects the government’s ability to manage the economy and protect investors. If a country is politically unstable, there is a greater risk that the government will change or that there will be civil unrest. This can lead to economic instability, such as inflation or currency devaluation, which can hurt investors.<\/p>\n Exchange risk is the risk that the value of a currency will change relative to another currency. This can affect investors who are investing in foreign assets, such as stocks or bonds. If the value of the currency of the country where the asset is located falls, the value of the investment will also fall.<\/p>\n Systematic risk is the risk that affects all investments, regardless of the specific asset or country. This includes risks such as changes in interest rates, inflation, and economic recessions.<\/p>\n Non-systematic risk is the risk that is specific to a particular asset or country. This includes risks such as changes in the management of a company or political instability in a country.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”exchange risk” option2=”systematic risk” option3=”non-systematic risk” option4=”country risk” correct=”option4″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-59690","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n