what is the meaning of liquidity risk and currency risk
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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what is the meaning of liquidity risk and currency risk
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Introduction
Every investment entails some level of risk. The uncertainty degree or the potential financial loss inherent in an investment choice is referred to as risk in finance. In general, when investment risks increase, investors desire bigger returns to compensate for the risk they are taking.
Each saving and investment option comes with its own set of risks and rewards. The ease with which investors may receive their money when they need it, the rate at which their money will increase, and the safety of their money are all factors to consider. We'll discuss a variety of hazards that investors confront in this section.
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