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. 7 Ways To Protect Against Credit Card ...
    Credit & Loans

    7 Ways To Protect Against Credit Card ...

  2. New 2015 Contribution Limits: Advisors ...
    Investing Basics

    New 2015 Contribution Limits: Advisors ...

  3. The Fear And Greed Cycle Lives On
    Markets

    The Fear And Greed Cycle Lives On

  4. Credit Card Breach: How To Stay Safe
    Credit & Loans

    Credit Card Breach: How To Stay Safe

  5. Six Things Bad Financial Advisors Do
    Investing Basics

    Six Things Bad Financial Advisors Do

Trading Center