Which is the greatest risk when investing in stocks? A. call risk B. inflationary risk C. interest rate risk D. liquidity risk E. market risk

Respuesta :

lucic

Answer:

E. market risk

Step-by-step explanation:

When investing in stock, an investor should be aware of three key risks which are;

  • The market risk
  • The Inflation risk
  • Liquidity risk

Market risk involves loses that are as result of entire performance of  financial markets. Examples are stock market bubbles.Inflation risk is concerned with cash used for an investment, where changes in power to purchase may cause  inflation risk.Liquidity risks happens when an investor is unable to sell or buy earlier enough to prevent losses.

The correct option is E. market risk

The information regarding the market risk is as follows;

  • It includes the losses that leads to the overall performance of the financial markets like - stock market
  • So we can say that the market risk termed to the high risk at the time of investing in the stock.

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