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Which type of risk involves variability in returns due to currency fluctuations?
  • a)
    Interest Rate Risk
  • b)
    Business Risk
  • c)
    Exchange Rate Risk
  • d)
    Financial Risk
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which type of risk involves variability in returns due to currency flu...
Exchange Rate Risk, also known as currency risk, involves variability in returns on securities caused by currency fluctuations when converting foreign gains back to the investor's own currency. This risk is associated with international investments and can impact returns due to changes in exchange rates.
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