Question: Which of the following statements concerning risk and return is NOT correct?

Multiple Choice:

A.) Exchange rate risk is the risk that currency fluctuations will cause an adverse effect on the return from an investment.

B.) Market risk includes a wide range of factors, including business cycles, changes in interest rates, global conflicts, as well as changes in consumer preferences.

C.) Total return = Yield + Price change.

D.) Inflation risk, or purchasing power risk, is the variability in securities returns caused by a decline in the purchasing power of the invested dollars.