CFP

By Investopedia 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

You May Also Like

Related Articles
  1. Trading Strategies

    Rise and Shine With This Pre-Market ...

  2. Trading Strategies

    5 Ways To Adapt To Tough Markets

  3. Professionals

    Want To Be A Financial Planner? Eye ...

  4. Personal Finance

    Credit Risk Analyst: Boring Title, Great ...

  5. Mutual Funds & ETFs

    Position Your ETF Portfolio For Success ...

Trading Center