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    Question

    Financial Risk can be defined as _________

    A Uncertainties in cash flow Correct Answer Incorrect Answer
    B Uncertainties resulting in adverse variation of profitability Correct Answer Incorrect Answer
    C A risk which may result in outright losses Correct Answer Incorrect Answer
    D Variations in Net Cash Flows Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Financial risk refers to the degree of uncertainty and/or potential financial loss inherent in an investment decision. In simple words f inancial risk is the possibility of losing money on an asset.

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