- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 5. Introduction to Geopolitics
- Subject 6. Incorporating Geopolitical Risk into the Investment Process
CFA Practice Question
Bexit is an example of event risk.
A. Event risk
B. Exogenous risk
C. Thematic risk
Explanation:
An event risk is based on predetermined dates, like elections, the enactment of new laws, or other date-based events like festivals or political anniversaries. Investor expectations frequently shift as a result of political events. Political timelines are a common starting point for risk analysts when evaluating event risk.
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