Which of the Following Statements About Relevant and Irrelevant Risks

Multiple Choice

Which of the following statements about relevant and irrelevant risks is true?

A) Relevant risk includes inflation risk, but excludes political risk.
B) Relevant risk includes interest rate risk, but excludes default risk.
C) Relevant risk includes liquidity risk, but excludes exchange rate risk.
D) Relevant risk includes exchange rate risk, but excludes inflation risk.
E) Relevant risk includes default risk, but excludes political risk.