A. price risk
B. profit risk
C. selling risk
D. financial risk
✅ The correct answer is option A.
In financial transactions, risk that there will be no profit in selling of this asset is classified as price risk. Price risk is the potential for the decline in the price of an asset or security relative to the rest of the market. It excludes market risk, or the potential for an entire market to go down in value. As such, price risk is the component of investing risk that can be reduced with diversification.
In financial transactions, risk that there will be no profit in selling of this asset is classified as price risk. Price risk is the potential for the decline in the price of an asset or security relative to the rest of the market. It excludes market risk, or the potential for an entire market to go down in value. As such, price risk is the component of investing risk that can be reduced with diversification.