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Which risk refers to the financial risk that an asset is overvalued and worth less than expected when it matures or is sold?
  • a)
    Legislative Risk
  • b)
    Valuation Risk
  • c)
    Detection Risk
  • d)
    Rating Risk
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which risk refers to the financial risk that an asset is overvalued an...
Valuation risk is the financial risk that an asset is overvalued and worth less than expected when it matures or is sold. Factors contributing to valuation risk can include incomplete data, market instability, financial modeling uncertainties, and poor data analysis. Overvalued assets can lead to losses for their owners and reputational risks for financial institutions.
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Which risk refers to the financial risk that an asset is overvalued and worth less than expected when it matures or is sold?a)Legislative Riskb)Valuation Riskc)Detection Riskd)Rating RiskCorrect answer is option 'B'. Can you explain this answer?
Question Description
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