Which of the Following Is NOT an Example of Market

question 88

Multiple Choice

Which of the following is NOT an example of market risk?

• A)A share investor whose portfolio has been devastated by a stock-market crash.
• B)A loan on which the borrower is unable to make scheduled repayments.
• C)A borrower who finds that interest rates in the money market are higher than expected.
• D)An importer that has to cope with an unexpected depreciating exchange rate.
• E)A fund manager intending to sell at a future date that may face falling share prices.

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Definitions:

Contract or Statute

Legal documents that establish rights and obligations; a contract is an agreement between parties, while a statute is a law enacted by a legislative body.

Vicarious Liability

A legal principle that holds an entity or individual responsible for the actions of another party, typically in an employer-employee relationship.

Personal Fault

An individual's responsibility or blame for a mistake, accident, or wrongdoing, often influencing legal judgments or penalties.

Torts Committed

Acts or omissions leading to injury or harm to someone else, resulting in legal liability for the person responsible.