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Please answer these following questions. Thank you. QUESTION 7 Match the correct explanations for the given terms below. 7; Common share - Preferred shares -

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Please answer these following questions. Thank you.

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QUESTION 7 Match the correct explanations for the given terms below. 7; Common share - Preferred shares - Bonds -7. Mutual fund A' A debt security that represents a loan to a corporation or government, for which the holder will receive interest payments as well as the principal payment back at maturity date. 3' An investment program funded by shareholders that trades in diversified holdings and is professionally managed. 0' Do not have voting rights, trade on the stock exchange and provide interest payments to owners. 0' Usually carry voting rights and represent the ownership of the company. May pay dividends. QUESTION 8 Match the following types of risk with the most accurate description. J Inflation risk J Business risk J Interest rate risk J Liquidity risk - a Foreign exchange risk A- Erodes the purchasing power of a dollar. 3' Comes from bad corporate management decision making, strategies, unsuccessful products, etc. 0' Caused by the inverse relationship between interest rates and assets market values (eg. bonds). D' Exists because of uncertainty about asset resale ability. 5 Created when an investment is made in assets using foreign denominations. 0 U ESTI O N 9 Which of the following types of rick can be minimized by diversification? 0 Systematic risk 0 Firm-specific risk 9 Unsystematic risk D Systemic risk

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