WGU D363 EXAM QUESTIONS WITH CORRECT ANSWERS.

WGU D363 EXAM QUESTIONS WITH
CORRECT ANSWERS

Market |Risk |- |CORRECT |ANSWER✔✔-Also |know |as |sytematic |risk, |the |potential |for |investment
|losses |due |to |adverse |movement |in |financial |markets




unsystematic |risk |- |CORRECT |ANSWER✔✔-Risks |that |are |not |shared |with |a |wider |market |or |
industry



Political |risk |- |CORRECT |ANSWER✔✔-The |risk |that |political |decisions, |events, |or |conditions |will
|significantly |affect |the |profitability |of |an |investment




Inflation |risk |- |CORRECT |ANSWER✔✔-The |risk |that |rising |inflation |will |decrease |the |real |value |
of |an |investment |or |asset



Regulatory |risk |- |CORRECT |ANSWER✔✔-Refers |to |the |potential |negative |impact |on |a |business |
or |industry |due |to |changes |in |laws, |regulations |or |policies



Business |cycle |risk |- |CORRECT |ANSWER✔✔-The |risk |that |a |companies |profits |or |an |
investments |returns |will |be |negatively |affected |by |fluctuations |in |the |economy, |specifically |
during |periods |of |economic |contraction |or |recession



Marketability |risk/liquidity |risk |- |CORRECT |ANSWER✔✔-The |risk |that |an |investment |cannot |be
|easily |sold |or |that |it |will |be |sold |at |a |significant |discount |if |it |is |sold




Market |volatility |risk |- |CORRECT |ANSWER✔✔-The |risk |of |an |adverse |change |is |price, |due |to |
changes |in |the |volatility |of |a |factor |affecting |that |price