CFP

AAA

Types of Investment Risk - Practice Questions 10 - 13


  1. Hedge funds, as a rule, are least susceptible to:
    1. Inflation risk
    2. Liquidity risk
    3. Reinvestment risk
    4. Capital impairment
  2. Fixed income securities in high yield funds are most subject to:
    1. Default risk
    2. Purchasing power risk
    3. Business risk
    4. Interest rate risk
  3. Arrange the following items in terms of their susceptibility to inflation risk, from least to greatest.
    1. A 4 year treasury note
    2. Commercial paper
    3. Emerging market debt mutual fund with an average maturity of 5 years
    4. Privately placed 7.3 year duration corporate bond
    5. Growth and income mutual fund
    1. II, I, III, V, IV
    2. V, IV, III, I, II
    3. V, III, II, I, IV
    4. V, III, IV, I, II
  4. Risks associated with private equity include:
    1. Capital impairment
    2. Business risk
    3. Market risk
    4. Total risk
    1. I
    2. I, IV
    3. III, IV
    4. I, II
Answers and Explanations
comments powered by Disqus
Related Articles
  1. Fee-Only Financial Advisers: What You ...
    Investing Basics

    Fee-Only Financial Advisers: What You ...

  2. Another Sound Lesson In Risk Management
    Investing News

    Another Sound Lesson In Risk Management

  3. Choosing The Right ETF Index To Reach ...
    Investing News

    Choosing The Right ETF Index To Reach ...

  4. Using Normal Distribution Formula To ...
    Investing Basics

    Using Normal Distribution Formula To ...

  5. Hypothesis Testing in Finance: Concept ...
    Active Trading Fundamentals

    Hypothesis Testing in Finance: Concept ...

Trading Center