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An investor who places the majority of assets in a single stock exposes the portfolio to:

A. business risk
B. liquidity risk
C. inflation risk
D. market risk

1 Answer

6 votes

Answer:

A. business risk

Step-by-step explanation:

As the name suggests, the business risk is that risk in which the company fails to achieves its sales target due to investing major assets in a single stock to get the best return

Due to business risk, the firm lowered its profits so that it can able to pay its debts. It can arrive due to impossible consequences such as taste and preferences, rise in competition, labor strikes, obsolesces in machinery

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