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Business risk is whether the company will succeed or fail. For example, if you invest in a restaurant, business risk means whether the restaurant becomes popular or whether customers like the food. Said another way, business risk is the risk of this one company performing well or badly. Financial risk is how your investment is affected by the financial enviroment. For example, if your stock pays a 5% dividend and other stocks pay a 10% dividend, it would depress the price of your stock. Said another way, financial risk is the risk that changes in the economy that make an investment more or less attractive.

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13y ago

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