Frequently Asked Question
Which statement(s) is/are FALSE about market risk?
I. It is mitigated by writing calls.
II. It includes the risk the investor will lose invested principal.
III. It is the same as systemic risk.
IV. It is mitigated by buying defensive stocks.
A. I only
B. II only
C. II and III
D. III and IV
Correct answer: B
Statement II describes capital risk not market risk.
II. It includes the risk the investor will lose invested principal.
III. It is the same as systemic risk.
IV. It is mitigated by buying defensive stocks.
A. I only
B. II only
C. II and III
D. III and IV
Correct answer: B
Statement II describes capital risk not market risk.
by
Peter Cherewyk
Peter Cherewyk has worked in the financial field for over 10 years. He completed his Bachelor of Commerce from the University of Alberta, and is currently working towards a Chartered Financial Analyst designation. He enjoys hockey and hiking and the opportunity to teach others.
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