Question

1 Which of the following is not considered part of business risk? A. Price risk C....

1 Which of the following is not considered part of business risk? A. Price risk C. Pure risk B. Credit risk D. Longevity risk

2. All of the following are types of price risk except A. commodity price risk. B. exchange rate risk. C. stock market risk. D. interest rate risk.

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Answer #1

1). Option "D" is correct.

Longevity risk is risk to which a pension fund or life insurance company could be exposed as a result of higher-than-expected payout ratios.

Price risk is the risk of a decline in the value of a security or an investment portfolio.

Pure risk, also called absolute risk, is a category of threat that is beyond human control and has only one possible outcome if it occurs: loss

Credit risk is the probable risk of loss resulting from a borrower's failure to repay a loan or meet contractual obligations.

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