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      Question

      Financial Risk can be defined as

      _________
      A Uncertainties in cash flow Correct Answer Incorrect Answer
      B Uncertainties resulting in adverse variation of profitability Correct Answer Incorrect Answer
      C A risk which may result in outright losses Correct Answer Incorrect Answer
      D Variations in Net Cash Flows Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Financial risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decision. In simple words f inancial risk is the possibility of losing money on an asset.

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