SIE Exam Question 525: Answer and Explanation

Question: 525

An investor who may lose part or all of his investment is subject to which of the following?

• A. Market risk.
• B. Credit risk.
• C. Capital risk.
• D. Reinvestment risk.

Correct Answer: C

Explanation:

C: If an investor may lose part or all of his capital, it is called capital risk.