Investment Risks: Definition & Types


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question 1 of 3

What is the definition of risk?

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1. What is the definition of investment risk?

2. Which is an example of an investment that's subject to liquidity risk?

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About This Quiz & Worksheet

This quiz and worksheet are designed to help you quickly assess what you know about the various types of risk associated with investments. You will be quizzed mainly on your ability to define these risks and to recognize examples of them.

Quiz & Worksheet Goals

This assessment tool will measure your ability to:

  • Define risk and investment risk
  • Describe inflation risk
  • Recognize examples of liquidity risk and credit risk

Skills Practiced

  • Defining key concepts - ensure that you can accurately define main terms, such as risk and investment risk
  • Information recall - access the knowledge you've gained regarding liquidity risk and credit risk
  • Knowledge application - use your knowledge to answer questions about inflation risk

Additional Learning

You'll find more details about this topic in the lesson titled Investment Risks: Definition & Types. The lesson provides information about:

  • Market risk
  • Stocks and mutual funds
  • Interest rate and currency risk
  • Credit rating