Which statement(s) is/are FALSE about market risk?

By Peter Cherewyk AAA
A:

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.



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