If the investor invests his money in a particular company and company gets bankrupt, it is said to be…
Default risk is the risk that an issuer will fail to meet its promised payments, as may happen in bankruptcy. Market risk and interest rate risk concern changes in market…
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If the investor invests his money in a particular company and company gets bankrupt, it is said to be __________
Answer and explanation
Correct answer A
Default risk is the risk that an issuer will fail to meet its promised payments, as may happen in bankruptcy. Market risk and interest rate risk concern changes in market values rather than failure to pay contractual obligations.
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Maharashtra and Goa SET (MH SET)