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Types of Financial Risk
Every saving and investment action involves different risks and returns. In general, financial theory classifies investment risks affecting asset values into two categories: systematic risk and unsystematic risk. In addition to the broad systematic and unsystematic risks, there are several specific types of risk.
4. In pairs/groups discuss and give define the following types of financial risk:
⃰ business risk ⃰ credit or default risk ⃰ country risk ⃰ foreign-exchange risk
⃰ interest rate risk ⃰ political risk ⃰ counterparty risk.
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