Question

Which risk is associated with uncertainty in market prices affecting transaction outcomes?

Hint:

Market risk is the risk of loss from changes in market prices affecting transactions.

Answer 1

The risk associated with uncertainty or fluctuations in market prices that can affect the outcome of a transaction is called Market Risk.
Market Risk refers to the possibility of losses due to changes in the value of securities caused by factors such as:

Price volatility
Interest rate changes
Economic events
Political developments
This risk impacts traders, investors, and financial institutions as the value of their holdings or trades can vary unexpectedly.