- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 66. Introduction to Risk Management
- Subject 3. Identification of Risks
CFA Practice Question
Which of the following is(are) not (a) financial risk(s)?
II. Solvency risk
III. Settlement risk
I. Liquidity risk
II. Solvency risk
III. Settlement risk
Correct Answer: II and III
Both solvency risk and settlement risk are non-financial risks.
Liquidity risk is the risk that, as a result of degradation in market conditions or lack of market participants, one will be unable to sell an asset without lowering the price to less than the fundamental value.
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