John Smith has invested in an inverse ETF. Smith is a novice investor who is not familiar
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John Smith has invested in an inverse ETF. Smith is a novice investor who is not familiar with inverse ETFs, and therefore, he is unsure how the ETF will perform because of a lack of understanding of the ETF’s risk and return characteristics. This risk is best described as:
A. counterparty risk.
B. holdings-based risk.
C. expectation-related risk.
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