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SIE: Risk & Portfolio Management
SIE practice questionmediumBusiness risk

What type of risk is most present when a new competitor enters the market and a company’s sales decline?

  1. AMarket risk
  2. BBusiness risk✓ Correct answer
  3. CCall risk
  4. DInterest rate risk
Explanation

Why BBusiness risk

Business risk covers company-specific threats, like competition. The other risks refer to broader or unrelated factors.

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