Types of Investment Risk - Practice Questions 5 - 9
- Jesus Pimental is opening an UTMA account for his grandnephew Dillon who is seven years old. The account objective is to accumulate money towards a college education. As a fiduciary, Pimental should be most concerned with:
- Loss of principal
- Short term volatility
- Inflation risk
- Liability mismatching
- Diversifiable risk includes all of the following except:
- Political risk
- Market risk
- Business risk
- Default risk
- Industry risk
- Recapitalizations, management or leveraged buyouts and restructurings are all events that could impact the quality of a company's debt. This sort of risk is referred to as:
- Reinvestment risk
- Capital risk
- Purchasing power risk
- Event risk
- All of the following investments and strategies would be unsuitable for seniors, EXCEPT:
- Bear market funds
- A laddered bond portfolio
- A money market fund
- A blue chip growth stock
- A managed futures strategy
- All of the following are subject to sovereign risk, EXCEPT
- GKOs (intermediate term Russian government debt)
- Bunds (German treasury bonds)
- Brady bonds
Stock AnalysisRisk is a fundamental part of investing. It might be easiest to understand by using bonds as an example.#-ad_banner-#With bonds, the only investment that is considered to be risk free is short-term ...
Bonds & Fixed IncomeSovereign debt can play an important role in providing international diversification to individual investors.
InvestingImpact investing funds can carry risks unique to this asset class, including political risk, currency risk and exit risk.
EconomicsDeveloping markets can be attractive additions to many investor's portfolios, but carry additional risks that must be considered.
InvestingThere is a significant number of questions every investor, private or institutional, should consider before investing in bonds.
Investing BasicsEach investment product has specific risks that come with it, while some risks are inherent in every investment.
Bonds & Fixed IncomeA government bond is a debt security a government issues.
Bonds & Fixed IncomeIf you want a diversified portfolio and steady cash flow, check out this fixed-income strategy.
RetirementLearn about the best types of bonds to include in an IRA depending on an investor's risk tolerance. Understand the tax benefits of holding bonds in an IRA.
InvestingThe impact of inflation risk affecting corporate bond returns can be significant. It may even result in a real loss of purchasing power.
A portfolio management strategy and model for investing in fixed ...
Bonds that are issued by the governments of developing countries. ...
A bond issued by Germany's federal government, or the German ...
A form of risk that summarizes the risks a company or firm undertakes ...
The risk that future coupons from a bond will not be reinvested ...
A fund that attempts to expose its investors to a specified amount ...
Learn about market risk and country risk, some examples of each and the main difference between these two types of risks. Read Answer >>
Understand the difference between a company's financial risk and its business risk, along with some of the factors that affect ... Read Answer >>
The most well-known risk in the bond market is interest rate risk - the risk that bond prices will fall as interest rates ... Read Answer >>
a. Call risk b. Reinvestment risk c. Credit risk d. Purchasing power risk Answer: Bbecause call risk would apply more often ... Read Answer >>
a. Call risk b. Reinvestment riskc. Credit riskd. Purchasing power risk Answer: Bbecause call risk would apply more often ... Read Answer >>
Explore the various sources of business risk for companies and learn how critical risk management is to a company's financial ... Read Answer >>