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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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