Question

What is Market Risk in the context of Systematic Risks?

a.

Risk due to inflation or rise in prices

b.

Risk arising from fluctuations in the prices of securities and equity shares

c.

Risk associated with changes in interest rates

d.

Risk specific to a particular industry

Answer: (b).Risk arising from fluctuations in the prices of securities and equity shares Explanation:Market Risk is a component of Systematic Risks, arising due to fluctuations in the prices of securities and equity shares traded in the market.

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Q. What is Market Risk in the context of Systematic Risks?

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