3. Investment companies attempt to explain to investors the nature of the risk the investor incurs when
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3. Investment companies attempt to explain to investors the nature of the risk the investor incurs when buying shares in their mutual funds. For example, Vanguard carefully explains interest-rate risk and offers alternative funds with differ- ent interest-rate risks. Go to http://majestic.van guard.com/FP/DA.
a. Select the bond fund you would recommend to an investor who has very low tolerance for risk and a short investment horizon. Justify your answer.
b. Select the bond fund you would recommend to an investor who has very high tolerance for risk and a long investment horizon. Justify your answer.
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Related Book For
Financial Markets and Institutions
ISBN: 978-0321280299
5th edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
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