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Answer Posted / mohammad sazzad hossain khan
Investment Risk is the potential for fluctuation in the
value of an investment, which could result in loss of
Principal. Some causes of Investment Risk are: general
market fluctuations, industry-specific market fluctuations,
trends in Interest Rates and foreign exchange rates,
company specific factors, and others. Higher Risk is
usually associated with the potential for higher long-term
rates of return.
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