10:37 5G Marketplaces: EVERFI Investing Basics \( { }^{m} \) Quiz Question 5 of 5 A recent aluminum shortage has made it difficult for soda companies to make cans. Which type of investment risk relates to this situation? Select a response. Market Risk Business Risk Industry Risk Liquidity Risk Submit Finish Back Finish platform.everfi.net

The situation describes an issue affecting a specific sector, in this case, the beverage industry, due to the aluminum shortage. This is a classic example of industry risk, where challenges impacting a particular industry can lead to decreased earnings or increased costs for companies within that sector. Soda companies may struggle with supply chain issues and increased expenses, which can affect stock prices. Investing in sectors affected by specific market conditions can be tricky! A common mistake is not diversifying your investments. If you only focus on one industry, like beverages during an aluminum shortage, you run the risk of significant losses if that sector suffers. Spreading your investments across various industries helps mitigate such risks and can enhance overall portfolio stability.