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
ProfessionalsFINRA Series 6: Section 9 Types of Investment Risks. This section explains different types of risks, exchange rate risk, Interest Rate Risk, Business Risk, Credit Risk, Taxability Risk, call ...
RetirementLet's take a look at the two basic types of risk: Systematic Risk - Systematic risk influences a large number of assets. A significant political event, for example, could affect several of the ...
ProfessionalsA 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.
ProfessionalsFINRA/NASAA Series 66: Section 5 Bond Risks. This section discusses different risks associated with bonds.
ProfessionalsWe define the different types of risk and see how they influence investment returns.
Bonds & Fixed IncomeAn interest rate hike by the Fed, which will happen either during their June or September meeting, could impact your fixed income investments.
ProfessionalsPractice Questions 1 - 4
ProfessionalsCFA Level 1 - The Risk Premium. This topic covers risk premium, which is a component of required rate of return. Examines business, financial, liquidity and political risk.
Mutual Funds & ETFsThese funds can provide stable returns for those who depend on their investment income.
ProfessionalsSeries 7 - Section 2: Investment Risk and Tax Considerations
A collection of risks associated with investing in a foreign ...
A portfolio management strategy and model for investing in fixed ...
Bonds that are issued by the governments of developing countries. ...
The risk of a decline in the value of a security or a portfolio. ...
A risk management method used in the business or investment field. ...
Risk that affects a very small number of assets. Specific risk, ...
Find out why mutual funds, like all investments, are subject to market risk, including how the different types of market ... Read Answer >>
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 >>
Learn about market risk and the four primary sources of market risk including equity, interest rate, foreign exchange and ... Read Answer >>
Examine four major categories of financial risk for a business that represent potential problems that a company may have ... 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 >>