Answer :
Risks commonly considered to understand project financing are (C) investment risks.
What is investment risk/financial risk?
- Financial risk refers to any of the various types of risk associated with financing, such as financial transactions involving company loans that are at risk of default.
- It is frequently understood to include only downside risk, which means the possibility of financial loss and uncertainty about its magnitude.
- Dr. Harry Markowitz's article "Portfolio Selection" in 1952 launched a science centered on managing market and financial risk under the umbrella of modern portfolio theory.
- The variance (or standard deviation) of a portfolio is used to define risk in modern portfolio theory.
- Price fluctuations may be the single risk that prevents most would-be investors from investing.
- Price fluctuations affect the prices of securities, commodities, and investment fund shares.
Therefore, risks commonly considered to understand project financing are (B) organizational risks.
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