Question
Mutiple choice Which one of the following is a true statement? A. When choosing an investment, it is not necessary to consider the risk factor.
Mutiple choice
Which one of the following is a true statement?
A. | When choosing an investment, it is not necessary to consider the risk factor. |
B. | During inflationary times, there is a risk that the financial return on an investment will not keep pace with the rate of inflation. |
C. | The interest rate risk associated with investments in bonds is the result of changes in business conditions faced by companies. |
D. | The risk of business failure deals with changes in the value of stocks and bonds due to changes in interest rates in the market. |
E. | The prices of stocks, bonds, and other investments never fluctuate in the market. |
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