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The risk that arises due to change in the purchasing power...

This question belongs to Commerce Financial Management
Financial Management
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The risk that arises due to change in the purchasing power is called ?

Answer & Solution
Correct Answer: Option D
The risk that arises due to change in the purchasing power is called Inflation risk. Inflation risk, also called purchasing power risk, is the chance that the cash flows from an investment won't be worth as much in the future because of changes in purchasing power due to inflation.
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