SIE Exam Question 97: Answer and Explanation

Question: 97

____________ risk refers to the impact that bad management decisions, other internal missteps, or external situations can have on a company's performance and on the value of investments in that company.

  • A. Market
  • B. Investment
  • C. Financial
  • D. Management

Correct Answer: D

Explanation:

Management risk refers to the impact that bad management decisions or other internal missteps can have on a company's performance and on the value of investments in that company. Market risk, or systematic risk, is the potential for loss due to the performance of the financial market. Investment risk is the risk that an investment's performance will be worse than expected. Financial risk is a generic term describing a variety of risk types, including credit risk, liquidity risk, and operational risk.

All content of site and practice tests © 2022 Jack.
Quick View

FINRA Practice Tests