- 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
Practice Questions 10 - 13
Personal FinanceA company must identify the type of risks it is taking, as well as measure, report on, and set systems in place to manage and limit, those risks.
InvestingGoing global can add flavor and diversity to an otherwise bland basket of bonds.
Managing WealthImplementing risk management strategies can save an entire organization from failure. Is yours up to snuff?
InvestingThese funds can provide stable returns for those who depend on their investment income.
Financial AdvisorImpact investing funds can carry risks unique to this asset class, including political risk, currency risk and exit risk.
InvestingDon't assume that you can't lose money in this market - you can. Find out how.
InvestingEach investment product has specific risks that come with it, while some risks are inherent in every investment.
InvestingSovereign debt can play an important role in providing international diversification to individual investors.
Financial AdvisorRisk management is especially important in healthcare because human lives might be on the line. Here are some strategies to map out a plan.
InvestingThe rewards associated with this fixed-income asset are significant, but so are the risks.