Question

The effect on the prices of securities due to the "changing tastes, likes and dislikes" of investors is:____________A. Market riskB. Business riskC. Regulatory riskD. Opportunity cost

Answer 1

B. Business risk

Step-by-step explanation:

Business risk is any risk a business or organisation faces that might reduce its profits. Business risk is specific to the company. Business risk can be diversified. E.g. changing tastes, likes and dislikes, strikes etc

Market risk is any risk a business or organisation faces that is as a result of the performance of the overall financial market the company operates in. Market risk cannot be diversified.

Opportunity cost is the cost of foregoing other options when one option is chosen over other options.

I hope my answer helps you.