Mamma Mia Pizza has invested $1,000,000 in a restaurant in Rome. At the time of the investment the exchange rate is $1.25 = 1.00. A year later the exchange rate was the same, but the Italian government expropriated Mamma Mia's assets paying only 800,000 in compensation. This is an example of jQuery22406955190134616145_1572831706315????????????????????

• political risk.
• None of the options.
• market imperfections.
• exchange rate risk.
• Expropriation by the Italian government did not constitute a risk since $1,000,000 = 800,000 $1.25/1.00.