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Roger Moore is evaluating the existing risk management system of Alpha Asset Management and identified the following two risks I. Credit spreads widen following recent
Roger Moore is evaluating the existing risk management system of Alpha Asset Management and identified the following two risks
I. Credit spreads widen following recent bankruptcies
II. The bid-ask spread of an asset suddenly widens
Which of these can be identified as liquidity risk?
| A. | I only | |
| B. | II only | |
| C. | I and II | |
| D. | Neither |
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