Portfolio Management Q172

0. Analyst 1: Market risk is the risk that arises from the movements in interest rates, stock prices, exchange rates, and commodity prices. Credit risk is the risk of loss if one party fails to pay an amount owed on an obligation, and liquidity risk is the risk of a significant downward valuation adjustment when selling a financial asset.

Analyst 2: Credit risk is the risk that arises from the movements in interest rates stock prices, exchange rates, and commodity prices. Liquidity risk is the risk of loss if one party fails to pay an amount owed on an obligation, and market risk is the risk of a significant downward valuation adjustment when selling a financial asset.

Analyst 3: Liquidity risk is the risk that arises from the movements in interest rates, stock prices, exchange rates, and commodity prices. Credit risk is the risk of loss if one party fails to pay an amount owed on an obligation, and market risk is the risk of a significant downward valuation adjustment when selling a financial asset.

Which analyst’s statement is most likely correct?

Answer
Comment
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Option : A
Explanation : Market risk is the risk that arises from the movements in interest rates stock prices, exchange rates, and commodity prices. Credit risk is the risk of loss if one party fails to pay an amount owed on an obligation, and liquidity risk is the risk of a significant downward valuation adjustment when selling a financial asset.

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