SIE practice questioneasyConcentration risk
An investor puts most of his portfolio into a single technology company. This exposes him mainly to which risk?
- AInterest rate risk
- BConcentration risk✓ Correct answer
- CMarket risk
- DInflation risk
Explanation
Why B — Concentration risk
Concentration risk involves overexposure to a single asset or sector. Interest rate and market risks are broader, while inflation is not related to portfolio concentration.
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