Which investment risks relate primarily to losses due to changes in the economy?

Investment risks associated with changes in the economy include market risk, inflation risk, and interest rate risk.

Market risk refers to the potential losses that can occur due to overall market volatility and economic downturns, which can affect all types of investments. This risk is tied to the broader economic environment, including factors such as economic growth, unemployment rates, and political events that can cause wide fluctuations in investment values.

Inflation risk is the possibility that the purchasing power of future cash flows from investments will be eroded due to rising prices. When inflation increases, the real value of returns decreases, impacting investments, particularly those that do not adjust for inflation.

Interest rate risk arises from the potential for fluctuations in interest rates to impact the value of investments, especially fixed income securities like bonds. When interest rates rise, the market value of existing bonds tends to fall, leading to potential losses.

Given that all these risks are fundamentally linked to changes in the economic environment, it is accurate to identify that they collectively represent the investment risks primarily associated with economic changes. Thus, recognizing that these risks interconnect and influence the performance of investments underlines why the correct response encompasses all the stated options.