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Understanding the Risks and Rewards of Investing You've heard that investing can be risky, but what exactly are the risks? Why do some investments succeed

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Understanding the Risks and Rewards of Investing You've heard that investing can be risky, but what exactly are the risks? Why do some investments succeed while others fail? some of the potential pitfalls your investments might encounter. Select the primary type of investment risk that corresponds to each of the given descriptions. (Hint: These are not necessarily but there is only one possible answer for each description.) Description Primary Risk Prior to 2008-2009, the shoe company Runner's High had been growing at a steady pace, expanding its product line and entering markets in new regions. When the recession hit, however, inventories piled up as sales declined, such that the company was unable to make payments to some of its suppliers. Comp Whiz is a tech company that initially sparked investor enthusiasm, resulting in a dramatic rise in share value after the initial public offering. In response to a rumor that the company's latest product contained a glitch, investors rushed to sell their shares, causing a sharp decline in the stock price. A restaurant chain recently issued $1,000,000 worth of new stock shares, increasing its debt obligations in hopes of financing a new restaurant location. The construction of the new store ended up taking twice as long as anticipated, thus forestalling the expected increases in revenue. As a result, the company is having difficulty making the interest payments on its outstanding debt

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