Which One of the Following Is an Investment Risk That

question 12

Multiple Choice

Which one of the following is an investment risk that investors face in addition to firm-based risk and market-based risk?

• A)management-related risk
• B)inflation risk
• C)supply chain risk
• D)interest rate risk
• E)sentiment-based risk

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Definitions:

Proportional

Corresponding in size, degree, or intensity; having a constant relation in degree or number between the parts.

Sales Taxes

Taxes imposed by governmental entities on sales of goods and services, typically collected at the point of sale from the consumer.

Regressive

Referring to a tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.

Progressive

Pertaining to political, social, or economic beliefs favoring or promoting changes, reforms, or innovations.